Francetic Tax Resolution - April 2020


If you have children in college, you are already aware of the IRS education tax credits that are available, specifically the American Opportunity Credit, where you can receive up to a $2,500 tax credit per child per year for the first four years of college. The nice feature of this credit is up to $1,000 can be used as a refundable tax credit, depending on the amount of tax you owe. An IRS refundable tax credit is money you will get back even if you do not owe any tax. The American Opportunity Credit (AOC) only requires the student to have $4,000 of education expenses to qualify for the maximum $2,500. So, if you have a 529 plan for your child and you have significant money accumulated in this account to pay education expenses, then you want to save $4,000 of education expenses to pay with “regular money.” For example, let’s say your child has $20,000 of education expenses in a calendar year. The strategy is to pay $16,000 of the expenses with 529 money, which has grown tax free over the years and is a tax-free distribution as long as it used for education expenses. Then pay the remaining $4,000 of expenses with personal money, so the AOC can be maximized as well. You cannot pay education expenses with 529 money and claim the AOC for the same expenses. The main limitation of the AOC is the income range where you qualify for the full credit. As long as your adjusted gross income is $160,000 or less for a married filing jointly ($80,000 for single) tax return, you can qualify for the full $2,500 AOC. Between income of $160,000 and $180,000 married filing jointly ($80,000 to $90,000 single), the credit is reduced per $1,000 of incremental income. It is completely phased out at incomes above $180,000 (MFJ) and $90,000 (single).


Inspired by


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1/2 cup mayonnaise

Salt, paprika, garlic powder, and pepper, to taste 12 large eggs, hard-boiled Fresh parsley, minced, and paprika for garnish

2 tbsp milk

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1 tsp dried parsley flakes

Please contact me if you have any questions about the different education credits and the expenses that qualify for the credits.

1/2 tsp dill weed

1/2 tsp fresh chives, minced

1/2 tsp ground mustard


1. In a large bowl, combine mayonnaise, milk, parsley flakes, dill, chives, mustard, salt, paprika, garlic powder, and pepper. Mix well and set aside.

2. Cut eggs lengthwise and remove yolks carefully to preserve egg whites.

3. In a small bowl, mash yolks.

4. Mix mashed yolks with mayonnaise mixture.

5. Spoon or pipe the mixture back into the egg whites.

6. Garnish with fresh parsley and paprika. Refrigerate before serving.



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