August 2016 Newsletter [PDF]
- The True Cost of Higher Education
In-state college students spent nearly $20,000 for tuition, fees, room and board, on average. All college costs continue to rise, so younger students probably will pay even more when they arrive on campus. Now for the good news. The above numbers are all published costs, sometimes known as the “sticker price.” The College Board also provides net prices, which may be more indicative of actual outlays by parents and students.
- Make the Most of College Financial Aid
In order to obtain financial aid, a key step is filling out the Free Application for Federal Student Aid (FAFSA). This is a complex form with many questions; its aim is to get a picture of a student’s family income and assets. Some of the questions request tax return information. Our office can help if you have difficulty with any FAFSA tax questions.
- Campus Tax Credits Can Top Tax Deductions
Besides financial aid, specific tax benefits can reduce the net cost of sending a child to college. Among the three major tax breaks—American Opportunity Tax Credit, Lifetime Learning Credit, tuition and fees deduction—you can claim only one on your tax return.
- Using IRA Money to Buy a Business Can Be Dangerous
Business owners may need capital to support growth, and the money in their IRA can be tempting. Nevertheless, the pitfalls can be steep, as illustrated in a recent Tax Court case. Read more in our August Newsletter.
- August Tax Calendar
Use our handy Tax Calendar for important dates and reminders for August, 2016.