PAYING FOR COLLEGE.
Do you own a business (full time or part-time)? Do you own investment real estate or a farm?
Would you be interested in learning how to use IRS rules to help you pay for college?
If you want to find ways to pay for college without ruining your personal retirement, there is hope (and it’s not just the renames tax credit mentioned below).
In this series, we’ll go over the various strategies available to help parents explore the various possibilities to reduce taxes and improve the odds for receiving financial aid, grants or scholarships. (Consider this: There are more than 110 different strategies.)
Food for thought:
Encourage your pre-teen to open a Roth IRA with earnings from their paper route or other jobs.
Consider hiring your child to work in your business or help with chores related to your investment property.
Use a CollegeSure CD issued by an FDIC-insured bank to accumulate savings
Think about using a fixed income annuity to hold a portion of money for college to avoid the potential loss in principal that can happen with a 529 plan invested in mutual funds.
The Hope education credit is renamed the “American Opportunity Tax Credit,” is increased to $2,500, and applies to four years of
college, not just the first two. In addition, 40% of the credit is now refundable. Income limits apply.
Another break for those paying higher education expenses: In 2009 and 2010, funds in Section 529 college plans can be used tax-free to pay for
students’ computers, computer technology, and Internet fees.
For more information on this topic, continue to check out this blog as well as the weekly Wedesnday night conference call series.