Back to school can be expensive. From tuition to school supplies, the costs can really add up. But here are a few ways to get free money or cut your taxes when it comes to back-to-school costs.
Start a 529 Plan
A 529 plan is a great way to save for your child or dependent's education. One of the major advantages of a 529 plan is that it allows you to stash money away and grow tax-deferred. For an added extra bonus, depending on the state where you set up the plan, you may qualify for a state tax deduction or free money to save.
And while you may run into a pitfall if you decide not to use the money for education-related expenses, it can be extremely useful no matter if your kids are K-12 or college-bound.
The Louisiana State School Expense Deduction
If you reside in Louisiana, you may qualify for the school expense deduction. The tax break allows you to cut your tax liability. The deduction is for 50 percent of the costs paid per dependent, up to $6,000. You can claim expenses for school uniforms, textbooks, or school supplies.
United Way's IDA Project - Free Match on Your Savings
If you are seeking a match on the money saved for education, you may not need to look any further. While there are some criteria you may need to meet, the United Way's IDA Program can match your savings for education 4 to 1. For example, let's say you save $1,000; you can get a match up to $4,000.
Scholarships and Free Grant Money
And finally, there are tons of scholarship money and grants available for students. Here are a few places to start.
Comments