As we pack up our students and send them off to school, here are three tips around kids, college students and college tuition that could impact your taxes.
- Children who are under 24 and are full-time students may be subject to Kiddie Tax on their investment income. Quite simply, this means that their tax return shouldn’t be prepared independently from yours. Please provide us with all sources of your child’s income so we can assess both situations and prepare the necessary returns.
- To avoid filing problems, we highly recommend parents of college-aged children allow us to prepare both your return and your child’s return. Too often young adults inadvertently claim themselves on their tax return, resulting in delayed parent refunds and the need to amend the child’s return.
- We also use our expertise to maximize tuition credits for your family annually (especially right after graduation). Please provide Form 1098-T from the college or university with your tax documents. We also recommend paying for Spring semester of your student’s Senior year in January, if possible.
If you have any additional questions related to your children or their tax returns, please feel free to reach out to us for guidance.