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ACE, Higher Education Associations Urge Lawmakers to Extend Tuition Tax Deduction and IRA Charitable Rollover

March 31, 2014

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​On behalf of 13 other higher education associations, ACE President Molly Corbett Broad has urged House and Senate tax-writing committee leaders to include extensions of two key higher education provisions in any tax extenders legislation enacted this year.

In a letter sent Friday to House Ways and Means Committee Chairman Dave Camp (R-MI) and ranking Democratic Rep. Sander Levin of Michigan, and to Senate Finance Committee Chairman Ron Wyden (D-OR) and ranking Republican Sen. Orrin G. Hatch of Utah, Broad noted that both the tuition deduction and Individual Retirement Account (IRA) Charitable Rollover provisions expired at the end of 2013.

The tuition deduction, formally known as the above-the-line deduction for qualified tuition and related expenses, helps reduce the cost of college by allowing students or parents to deduct up to $4,000 in eligible higher education expenses from their taxable income.

“Regrettably, its expiration last year means many students and families lost a valuable benefit that helps them finance a college education,” Broad said in the letter.

The IRA Charitable Rollover permits IRA owners who are at least 70½ years old to make tax-free donations to eligible charities, including colleges and universities. Since it was first instituted in 2006, the IRA Charitable Rollover has proven to be a valuable charitable giving incentive that should be extended to help all non-profit organizations generate new or increased contributions.

The expiration of the IRA Charitable Rollover impaired “the ability of colleges and universities to raise charitable funds at a time when private support is increasingly important to institutions struggling to maintain benefits for students, particularly financial aid, during challenging economic times and significant declines in state appropriations,” Broad said.

The letter requests Congress to act promptly to extend both provisions, and to do so retroactive to the beginning of this year.

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