Pay for Faculty Like a Professional: Taxes and the FAFSA


Pay for Faculty Like a Professional: Taxes and the FAFSA

In case your baby is a sophomore in highschool proper now, this yr is tremendous necessary to your faculty funding plan!

To be eligible for monetary support (grants & scholar loans) for school your baby might want to submit your tax return as a part of their FAFSA utility when making use of to schools of their senior yr.  The FAFSA makes use of the Prior-Prior Yr revenue to find out eligibility.  So…in case your baby is a sophomore in highschool proper now…2024 is the tax yr that will likely be used for monetary support eligibility.

The excellent news is you continue to have 9 months (loads of time!) left within the tax yr to make sensible strikes in case you hope to enhance your eligibility for monetary support.   As you file 2023 taxes, take a second to consider what you are able to do to optimize your 2024 tax yr particularly in case you have a toddler of their sophomore yr in highschool.  Usually, you wish to make the most of all the things accessible to you to scale back your revenue (Do’s) and keep away from something that can improve your revenue for the yr (Don’ts).  Beneath are some concepts however make certain that any changes you make are in coordination together with your total monetary plan and are the proper strikes for your loved ones.

Do’s Don’ts
Improve pre-tax retirement plan contributions in case you can. Understand capital positive aspects from the sale of a house or different investments in case you can.
Reap the benefits of different pre-tax worker advantages if it is smart for your loved ones (HSA, FSA, and many others.). Train inventory choices if doable.
Promote unhealthy investments that can help you have a loss in opposition to your revenue. Withdraw cash out of your retirement plan.
Delay bonus if doable.

 

Paying for school is a serious monetary purpose for you and your loved ones.  In case you are 0-5 years away out of your baby beginning faculty, paying to your baby’s faculty is rapidly turning into a actuality.  Construct a timeline as your baby enters highschool so that you don’t miss any deadlines to place you in the most effective place to decrease your total faculty prices. Now could be the time to make a plan that ensures faculty prices are reasonably priced, monetary support is maximized and use of your money circulation, financial savings and investments is optimized.

My son Romas is a Senior at UCSB this yr, I’m sharing this image of him on resolution day when he determined to go there 4 years in the past!  Our faculty journey is coming to an finish quickly, however I’ve a lot to share from my private expertise {and professional} data that will help you make sensible choices on your loved ones’s faculty journey.   It’s by no means too early or late to have a plan!

 



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