<p>I'm surprised with your attitude. The T season is over and the lecturing not yet started? You should have deferred your royalities. Nice button you pushed. </p>
<p>We have no regrets. We saved and invested with the goal of paying as much college expenses as possible. We gave S options and opportunities that he would not have had if he didn't have the finances available. We all need to read the threads of those kids who were accepted to their school of choice but have no way to pay for it. </p>
<p>What is a visitation log? Oh yes, lecturing doesn't start for a few week. I have some time to kill.</p>
<p>I simply want a deduction for my college expenses if I am not asking for any government handout or subsidy! I don't think it is too much to ask for.</p>
<p>Assuming that the kid is a responsible kid; I think its a good idea for assets to be in kids name. </p>
<p>Because, if you started the process early enough the taxation of kid's assets are much lower than the parents' rate. As our kid hits, 20, his current dividend tax rate is I believe 5%. and his longterm gain rate is 10%, which are lower than our tax rate. The exact numbers escapes me because, our tax program figures it out, and I don't need to remember the numbers until December. </p>
<p>Did you suggest that D work with you? and study law, finance, business, RE? Wouldn't her schooling then be deductible to you as a benefit as an employee?</p>
<p>There is an assumption here that every child should have a right to go to an expensive college. Why? Even if you can write down your Mercedes, which most people can't, you need to have a high enough income to buy one. Otherwise you'd be like most of the population who buy Hondas and other lower end cars. Why oh why is college seen as anything but another consumer product that you buy into at the level you can afford?</p>
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Why oh why is college seen as anything but another consumer product that you buy into at the level you can afford?
zagat is online now
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<p>I value health care- safe food and water- housing and education
I think those things should be available to everyone.
If a college with a huge endowment wants to give money to my daughter because they see that other wise she would not be able to attend their school, I should turn them down?</p>
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Why oh why is college seen as anything but another consumer product that you buy into at the level you can afford?
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<p>I think that many people, like me, bought into the idea (either through marketing or misconception) that colleges would welcome worthy students with open arms by working out the financial aid, be it need based or merit. Naive, I know, but now I am enlighteded to the process.</p>
<p>Absolutely not Emerald, take the money and thank them and know you're blessed. But understand that they are doing this because they value what your daughter brings. Some colleges will and others won't. Be greatful you found one that does, but anger at those who didn't offer admission based on finances would be inappropriate IMO.</p>
<p>Exactly lkf, I think you hit it right on the button. There is a misperception that colleges are going to accomodate all who are worthy students. A few years ago a good friend married a Canadian and moved to Canada with her autistic child believing that universal medical care would solve their medical needs. She soon found out that was a myth too. There is no utopia!</p>
<p>well we only selected schools that met 100% of need
or instate public or outofstate public that were offering merit aid
So while we had good financial choices- it is true that many families dont realize that schools gap or that they may not offer much merit aid.</p>
<p>It really can be difficult particulary for first generation students to get their foot in the door when they don't know all this information beforehand- I know the information is out there- but not every parent is a research junkie ;)</p>
<p>Itstoomuch asks,"Did you suggest that D work with you? and study law, finance, business, RE? Wouldn't her schooling then be deductible to you as a benefit as an employee?"</p>
<p>Actually, this won't work. If the education qualifies for a "new trade or business," which an undergrad education has been classified as, it wouldn't be deductible. Large businesses have a way to deduct up to $5,250 under an "educational assistance program." However, this program generally isn't as good for small business folks because no more than 5% of the benefits ( if I remember correctly) can inure to owners or 5% or more stockholders. Another idiotic tax provision.</p>
<p>This is one of the reasons why I like the way Canada approaches this. The government sponsors tax free college savings accounts. If parents contribute, the government contributes on a sliding scale based on the parents income. The earlier a parent starts contributing, the more the government contributes. There is a limit on total amounts. The reason I like this system is because it rewards parents for saving and gives the message that ultimately parents are responsible for paying for college.</p>
<p>OK. So have kid (generic) get an insurance, mortgage broker's, or RE license which would qualify for a initial business and costing less than $1000. Then hire D for that license and send her to school under the EAP. ??</p>
<p>maybe we should consult the US House Majority Leader?</p>
<p>One way that I like saving for college is via our 529 Plan. In Colorado, any contribution to that plan is deducted right off the top from your earnings for state income tax. So with a marginal state tax rate around 5%, you IMMEDIATELY make 5% on the money, in addition to other interest. The interest/gains you make are also tax-free. If the gains are used for education, there is no federal or state tax. And I can use the money for any school - public or private, in-state or out. That is hard to beat. Unfortunately, not all states allow you to deduct contributions from your taxable income.</p>
<p>Carolyn, we have several types of tax free saving accounts. We have a Roth IRA ( if the kid works), which allows kids to put away up to $4,000 per year, if they earned that much, in a tax free account. The money isn't deductible,but is tax free when used for education.</p>
<p>Then there is the Coverdale IRA, which I believe allows another $2,000</p>
<p>Finally, there is the prepaid tuition and section 529 plans,which allow parents to put away money on a non deductible basis and all the accumulation is tax free to the extent used for educational expenses.</p>
<p>However, all this simply reduces financial aid.</p>
<p>this IS a good plan. Unfortunately, it will never pass muster with the blue folks, since only red folks have money to invest (according to them). Similar to arguements about 401(k)s. :rolleyes:</p>
<p>There were some minor dips in the amount in the plan, but these were small and things worked out in the end. But I'm a very (sometimes too) conservative investor, so I had it in the less risky mixes, based on the number of years until HS graduation.</p>
<p>The major problem, I suppose, with 529 Plans is that since it's totally for education (for the named student) and nothing else, 100% of the assets in the plan are deemed available for schools expenses. Thus, if you have much of anything in there, seems like it would be a dollar for dollar increase in the EFC (but I don't really know how that's figured).</p>