This year, it is estimated that consumers with elementary children will spend approximately $700 on school supplies, and families with college students will spend roughly $980. It is expected back to school shopping will hit a record high this year, up to 80.7 billion dollars according to the National Retail Federation.
Saving on back to school shopping
* Create a budget
* Shop online
* Take advantage of coupons and discounts available in your areas
* Find back to school giveaways in your area
Consider tax deductions
Make sure to keep your receipts for back to school purchases. Individual purchases may qualify for the Louisiana School Expense Deduction. This deduction allows taxpayers to reduce their tax liability for tuition and fees paid on behalf of dependents. Also, uniform and supply purchases may qualify. The deduction is taken when filing the annual tax return. For more information, please visit the Louisiana Department of Revenue.
Also, taxpayers may claim an education credit of $25 for dependents from Kindergarten to 12th grade.
Setup a 529 plan
A section 529 plan allows earnings to grow tax-deferred, and distributions to pay education are tax-free. States and eligible institutions provide 529 programs. A vital advantage of the 529 plan is the contributor may be eligible for a state deduction. With the recent tax law changes, individuals can now save toward costs for Kindergarten through 12th grade. Money is set aside in account and can grow tax-free, as long as the money is utilized for qualified education expenses.
This weekend – McDonald’s on General DeGualle is hosting a back to school giveaway. The event will be held on August 10, 2019 from 12p to 2p. The first 100 kids will get free happy meals! Hosted by Jade Colin, owner and operator McDonald’s.