At public colleges, where the average tuition is $10,000, this change could increase your tax bill by $3,765 a year, according to a calculation done by Eric Bronnenkant, the Head of Tax at Betterment.
For private colleges, where the average tuition is $35,000, it could increase your tax bill by $11,295 a year. (Both calculations assume a federal tax rate of 25% and a state tax of 5%.)
