You see it in every department store and upon the countdown calendars gracing the walls of every parent – it is back-to-school time.

From a personal standpoint, whether your kids are already back in the classroom or are dreading their return there, I hope you had a good summer and made some lasting memories with that extra time together. From a professional standpoint, there are always tax questions that arise during this time.

This is far from a complete breakdown of some of the things you may now be thinking about, but consider it a primer and a push to think about some of these issues. To get a better feel for your personal situation, though, please contact us and let this be one of the ways we can point your finances in the right direction over the last few months of the year.

But until then, some general notes:

TUITION

Many are aware that college tuition can be a deduction on your tax return. Be aware, however, that private and parochial school tuition for those not yet in college is not deductible. For those with children under 13, though, there could be some tax credit involved with private school and its child care component cost.

Also remember that deductible tuition is not only for those in their teens and early 20s. Graduate, post-graduate and other continuing education at eligible institutions could also qualify.

BEFORE- AND AFTER-SCHOOL CARE

If you have any of those under-13 children (no matter what type of school they attend) those tax credits may again be involved if the child receives this type of care on either end of the school day.

These only apply, however, if the child is there so a parent can go to work, look for work or attend school themselves.

DONATIONS

This is a tricky area, but worth keeping in mind. For example, if you make a donation to a public school, it could qualify as a charitable donation if it is the benefit of all the students; if it is only for your child, however, then it would not be.

Throughout the year, you are bound to take place in many fundraisers and raffles, too. A raffle is never tax-deductible, but a fundraister could be if you receive nothing in return. Again, please talk with us to help better determine where things lie in your personal situation.

TAX-DEFFERED ACCOUNTS

There are some accounts that are slated for educational expenses and are tax-deferred. Money in those accounts could be used for different expenses over different ages - let’s say a computer for your son in high school – and avoid extra taxes.

STUDENT LOAN INTEREST

Much of this takes place after (and sometimes MANY years after) our schooling ends, but don’t forget that the interest paid on those seemingly ubiquitous student loans is deductible.

DON’T FORGET THE TEACHERS

Going back to school doesn’t only involve students, as teachers also get back to work. For those of you who spend time at the front of the classroom, keep your receipts when you buy materials for your classroom. There is an Educator’s Expense deduction that allows a deduction of up to $250 without itemizing deductions.

Beyond that, more can be deducted with itemizations. There are also considerations to be made for charitable contribution if you purchase something for the classroom that is more than general supplies and will remain with the school into the future.

Again, we will be happy to consider anyone’s personal situation, just contact us!