Note that getting into an MD/PhD program is probably even less of a sure bet than getting into Mayo Clinic for Ned school.
Oh that is a very good point @MYOS1634 if medicine falls through Vandy will give me so many more opportunities than Wright state
What is an MD/PhD? And yeah I might change to some other major just have bio as a placeholder
@Soccer1235 It is very likely that your parents qualify for American Opportunity Tax Credits. They start to phase out at 180,000 per year income level for two adults filing jointly - so a very generous portion of the population qualifies. The way this tax credit works, the IRS credits you 100% of the first 2000 of college tuition and 25% of the next 2000, for a total of a 2500 tax refund for families paying 4000 or more of tuition.
If they do not qualify for this credit, there are other tax benefits that may be available to them:
https://www.irs.gov/publications/p970/index.html
Oh I didn’t know that. I’ll have to research that. I learn something new every day on CC hahahahaha
MD/PhD programs are extremely competitive dual-degree programs for those who want an MD and are certain they have a strong interest in research and academic medicine. They’re also completely free, funded by research grants. You can imagine prestigious medical degree for $0 is not easy to obtain.
Oh wow that’s impressive and sounds extremely difficult
Ok I feel slightly confused but how exactly do the tax credits work? Is it that you don’t have to pay tax for the 2500 dollars you earned that are going towards college?
The American Opportunity tax credit would allow your parents to reduce the taxes they pay by $1 for every dollar spent on certain college-related expenses (such as books), up to the limit on the credit.
https://bigfuture.collegeboard.org/pay-for-college/paying-your-share/college-tuition-tax-credits
If your family income is about $90K/year (and assuming $90K home equity, 1 sibling 14 years old, and $45K in cash savings), then your Expected Family Contribution for some of the “full need” schools might be about $15K-$20K/year. After then deducting “self help” (student loans and work study), tax credits, and perhaps a small outside scholarship … your parents’ contribution might amount to the annual cost of room and board, or possibly less, for some of those schools.
Your Mileage May Vary (for better or for worse). The net cost estimates can be very sensitive to differences in income, assets, the number of siblings, etc. With an income of $80K, $40K in cash assets, 1 teen sibling not in college, and no home equity … the net price estimate I get for Vanderbilt is $8,291/year. After deducting a federal student loan, work-study, and tax credits, your parents’ contribution could be zero (or close to it). Again, YMMV. This is an estimate based on certain assumptions.
So it can be very important to clearly understand the key concepts (EFC, net price, tax credit, etc), gather complete and accurate information, run it all through the NPCs, and discuss the information with your family, before building a realistic reach-match-safety list.
Ok that makes sense thank you very much!