The fiscal cliff deal that President Obama signed on Wednesday includes a provision that allows parents to save $2,000 interest tax-free annually per child for certain educational expenses _ including private school tuition.
The Coverdell Education Savings Accounts provision, which had been a temporary school choice program within the Bush era tax cuts, would have been reduced to a $500 interest tax-free college savings plan if no deal had been signed, according to the Friedman Foundation for Educational Choice.
Now, it becomes a permanent part of the tax code, and parents can apply it to school-related extras such as computers and tutors, as well as private school tuition.
_ Shirley Jinkins
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