Divorced parents are probably already well aware that the financial piece of planning for college is mystifying at best. If you’re a divorced parent, I hope this information helps you with your planning.

Part of President Obama’s proposal to “simplify the tax code” includes significant changes to the tax treatment of 529 plans and Coverdell ESA accounts: for new contributions (i.e, after enactment of this proposal, should that happen) distributions would no longer be tax-free, even if they are used for qualified education expenses.

So Junior is off to college and now it’s time to start paying the bills. For those who have done a good job putting money away in a 529 account, it’s important that you time your distributions in the same year as your expenses. It’s time to learn about two forms: the 1099-Q and the 1098-T.

EFC is your Expected Family Contribution. In the real world, think of it as your Minimum Family Contribution. There is no requirement that a school meet your need, though some will.