Should Your Tax Strategy Include Saving for College?

Most parents want their children to go to college with good reason. It gives you a distinct advantage when it comes to making your way in the world, but how can you make college savings fit into your tax strategy?
First, you should know that a college education does come with some tax benefits, but you usually have to be in college to claim the benefits. The good news is that all that money that you are able to put aside for your child’s education has already had taxes paid so it can eventually be deducted from your taxes. Many people think that it may be easier just to take out a loan for college when the time comes because it can be deducted, but this isn’t necessarily a savvy tax strategy because it means that you will have to pay interest on top of student tuition.
One great way to include saving for college as part of your tax strategy is to try to save some of your return toward a college education. All of the money that you get back from the government may be able to make you money as you find small ways to invest in a college education for your children.
There may not be a lot of benefit to saving in the long term for college, but your tax strategy should never just consider the here and now. Think ahead to the money that you can deduct from your taxes as you realize you can actually afford to pay the outlandish expenses that come with a college education.
Your tax strategy should always consider your dreams and needs in the future. If you want to see your children go to college, start working your tax strategy around ways that you can make your money work for you.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.