CAPE January 2013 Meeting Notes
For Immediate Release
Contact: Marcy K. Krever, Senior Director of Marketing & Communications
Phone: 212-358-1250 x323
American Montessori Society
116 East 16th Street, New York, NY 10003-2163
January 22, 2013
Catherine Maresca, a member of the AMS Public Policy Committee, attends the monthly meeting of the Council for American Private Education. Located in Washington, DC, CAPE is a coalition of national organizations and state affiliates serving private elementary and secondary schools. Catherine filed this report with us:
CAPE met on Monday, January 14, 2013. We reviewed the Congressional membership for Education and Appropriatations committees. Joe McTighe, CAPE exective director, will set up appointments with new members so that we can introduce ourselves and outline key issues, and anyone in the group can be part of any of the meetings.
The American Taxpayer Relief Act of 2012, passed to avert the "fiscal cliff", has some implications for private schools and their parents and employees.
- Coverdell Educational Savings Accounts are a permanent part of the tax code! (for now). These are the accounts that parents set up to save for tuition for their children. The withdrawals are tax-free.
- Teacher tax deductions for out-of-pocket expenses on behalf of their classes are tax-deductible for another year.
- Pease Limitations (on itemized deductions) are reinstated.Tax deductions total are limited to 3% of amount over $300,000. Impact on high income earners increases with income. May impact tuitions and charitable donations to private schools.
- IRA distributions to charity: at age 70.5 one can access one's IRA and contribute to charity without paying taxes. Taxpayer can then take a charitable deduction on taxes. This was expiring but has been extended for one year.
- Charitable deduction cap was not changed. This was considered and the Coalition for Charitable Giving worked hard to prevent a reduction in the cap.