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Hello Wealth Builders!

No one told me how fast my son's senior year would come and go with graduation, college prep, and everything. Whew! It has been exciting helping him to transition to his next phase in life, and lots of adjustments on my end.

Here are a few tax deductions and credits for you to consider for your college student:

Tax Credits

1. American Opportunity Tax Credit (AOTC):
   • Worth up to $2,500 per eligible student.
   • Available for the first four years of higher education.
   • Covers 100% of the first $2,000 of qualified education expenses and 25% of the next $2,000.
   • Income limits apply.
2. Lifetime Learning Credit (LLC):
   • Worth up to $2,000 per tax return.
   • Available for all years of postsecondary education and for courses to acquire or improve job skills.
   • Covers 20% of the first $10,000 of qualified education expenses.
   • Income limits apply.

Tax Deductions

1. Student Loan Interest Deduction:
   • Up to $2,500 deduction for interest paid on student loans.
   • Available even if you do not itemize deductions.
   • Income limits apply.

529 Plans:

• Contributions are not deductible on the federal return, but earnings grow tax-free.
• Withdrawals for qualified education expenses are also tax-free.

You may still claim your student if they are living away temporarily in college.

One common theme you may have noticed is "income limits apply". This is when proactive tax planning is beneficial to your modified adjusted gross income. The key is to strategically identify ways to adjust your income, save on taxes, and achieve your goals.

A FEW IMPORTANT REMINDERS:

August 15th

• S Corporations and Partnerships - Internal deadline in order to meet the Federal tax deadlines:

September 15th

• Individuals and C Corporations - Internal deadline in order to meet the Federal tax deadlines:
• 3rd Quarter estimated tax payments
• S Corporation and Partnership returns

October 15th

• Individual and Corporation returns

December 31st

• Last day to file your Beneficial Ownership Report if you established a business/LLC prior to January 1, 2024. Please click on the link for additional information.

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Even though I've been quiet on email, work is still being done on the backend that has me super excited. I've partnered with the best bookkeepers and CFOs and met with my Certified Financial Planner to discuss additional ways to help you save on taxes. Yes, we are still preventing and solving tax problems. Are you next?

We are accepting new clients. Please feel free to select the call that best describes your needs.

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Tax filing is a one time event, but successful tax planning happens year 'round.