As a helpful resource, watch and listen to this VERY Helpful Video: Video Link

Whether you have young children years away from college or children where college is just around the corner, there are college planning decisions that  you can make, or not make, that can greatly affect the amount you'll ultimately pay for college.  Depending on how your company is structured (Sole proprietor, S-Corp, C-Corp, LLC), you have different options and opportunities for putting yourself in the optimum position to pay for college with the least amount of sacrifice.

Self-employed persons have an opportunity to drastically reduce the cost of their children’s college education.  They can utilize the education tax incentives provided by the IRS to receive a tax deduction for the costs they pay for college.  This will enable them to pay for college on a pre-tax basis versus an after-tax basis.  In addition to these tax benefits, self-employed persons can receive more grants and scholarships for their children because they can control their income during college years.  There are also cash flow strategies only available to self-employed persons that will allow them to pay for college without sacrificing their current lifestyles.  The typical self-employed person can reduce the cost of college by thousands of dollars by employing one or all options. Look at the opportunities that are available to you below:

• Lifetime learning credits
•  Hope credits
• 529 savings plans
•  529 prepaid tuition plans
• 127 plans
• "Tax scholarships"
• Tuition deduction
• Student loan interest deduction
• Income planning strategies
• Asset planning strategies
• Trusts.

All these thing and more can greatly affect the amount you'll ultimately pay for college - for better or for worse.  Contact the Friedlander Group using the form below and we will get you more information and to get your personalized college financial plan.

Best regards,
Jeff Friedlander, President