Taming the High Cost of College! : Financial Aid | FAFSA | Student Loans | Scholarships | Tax | Saving | Investing | Grants | 529 plans
About This Show
If you are the parent of a college bound high school student then this podcast is for you. Our goal is to give you the information you need to SAVE TIME, SAVE MONEY, and reduce stress in the college process. We will cover all aspects of planning and paying for college including things like: What to do if you do not qualify for financial aid, student loans, FAFSA and CSS profile, merit aid, scholarships, college tax breaks, visits, ACT and SAT, college fairs, the application process, and good college planning websites. Essentially all things college.
Most Recent Episode
THCC118 – Understanding College Tax Deductions Interview with Craig Cody, Certified Tax Coach and Author “Secrets of a Tax Free Life”
What is a certified tax coach? “We help our clients keep more of what they make by lowering their tax liability through legal means,” describes our guest Craig Cody. He is a best selling author and certified tax coach that works in all 50 states with his average client saving over $20,000 a year in taxes. Filling out the forms properly is very different from planning your life to get the most back from completing those boxes. Listen to this short episode for all of the tax secrets you can’t miss!
Questions Answered Today:
Are there tax benefits for paying for college?
Yes! Some of the top ones include:
* Lifetime Learning credit
* New Opportunity credit
People with children in school sometimes make too much money and they miss out on these. They didn’t plan and these credits phase out.
Some simple planning to perhaps move more money towards retirement can lower you back into the threshold.
Most people that file on their own or typical tax accountants would just say, “Sorry, you don’t get the credit,” instead of working to find a way to get the credit.
Financial aid is based on your income and assets.
There are legal strategies to lower your income by writing off expenses, or maybe restructuring a business/changing your entity, that can be very beneficial to business owners.
That’s where Craig Cody comes in- his company is filled with experts to help you with your unique situation to figure out if the benefit is worth the effort.
Bottom line: It is complicated and you really need to work with someone that understands both the college side as well as the tax side.
Communication is the key!
Can I hire my child?
Be sure to consult with your advisor to be certain you are doing everything correctly!
You can legally hire your child as young as 7 years old (Craig recommends 11 years old) to work on rental properties and start paying them a reasonable compensation.
Everything has to be well documented with excellent records (including how much you are going to be paying your child supported with comparable invoices of what a fair market price is), but then the money can be transferred into their own account (again, with documentation) and they can pay for college from there.
As long as they are under 21, their income is not subject to self-employment tax.
If you aren’t going to claim them as a dependent, they