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Pay for School Like a Professional: Taxes and the FAFSA
on Apr 4, 2024
In case your baby is a sophomore in highschool proper now, this yr is tremendous necessary in your school funding plan!
To be eligible for monetary support (grants & pupil loans) for faculty your baby might want to submit your tax return as a part of their FAFSA software when making use of to high schools of their senior yr. The FAFSA makes use of the Prior-Prior 12 months earnings to find out eligibility. So…in case your baby is a sophomore in highschool proper now…2024 is the tax yr that shall 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 good strikes should 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 when you have a baby of their sophomore yr in highschool. Normally, you need to make the most of all the things accessible to you to scale back your earnings (Do’s) and keep away from something that can improve your earnings for the yr (Don’ts). Under are some concepts however ensure that any changes you make are in coordination together with your total monetary plan and are the fitting strikes for your loved ones.
| Do’s | Don’ts |
| Improve pre-tax retirement plan contributions should you can. | Understand capital good points from the sale of a house or different investments should you can. |
| Make the most of different pre-tax worker advantages if it is sensible for your loved ones (HSA, FSA, and so forth.). | Train inventory choices if potential. |
| Promote unhealthy investments that help you have a loss towards your earnings. | Withdraw cash out of your retirement plan. |
| Delay bonus if potential. |
Paying for faculty is a serious monetary aim for you and your loved ones. If you’re 0-5 years away out of your baby beginning school, paying in your baby’s school is shortly 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 school prices. Now could be the time to make a plan that ensures school prices are inexpensive, monetary support is maximized and use of your money movement, financial savings and investments is optimized.
My son Romas is a Senior at UCSB this yr, I’m sharing this image of him on choice day when he determined to go there 4 years in the past! Our school journey is coming to an finish quickly, however I’ve a lot to share from my private expertise {and professional} data that can assist you make good selections on your loved ones’s school journey. It’s by no means too early or late to have a plan!
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