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| Financial Aid Tax Tips and Advice |  Interest on Student Loans
There are a lot of criteria for this deduction that must be met. The most important one is that your AGI (adjusted gross income) be under $55,000 if you are single or under $75,000 if you are married. The other criteria are normally met with relative ease. $2,500 is the maximum deduction for student loan interest.
Benefit from Available 529 Savings Plans
IRC Section 529 is roughly the educational equivalent of the IRA. The great investment strategy is letting your money grow tax free. This may still be an option for any younger children in the family, even if it is too late for your high school senior child.
Request that Grandparents Wait Until the Grandchild Graduates High School
Gifts prior to high school graduation can be held against you when filing the FAFSA.
Be careful of Trust Funds
They are largely ineffective at sheltering your money from the needs assessment. Often they also backfire as well. Act with caution on this front and make sure you are receiving expert and trustworthy advice before committing to this strategy.
Select to Return to School at the Same Time as Your Children
Have you been thinking over a return to school? The financial aid equation generally awards more money to those families with the most members that are simultaneously in school.
Minimize Your Capital Gains
Minimizing capital gains is almost always an optimal strategy since realizing capital gains triggers taxes and reduces the investment funds that can continue to compound growth and interest. It will increase your AGI, from a financial aid perspective.
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