Summer Is Passing Quickly

Winter this year seemed to hold on extra hard, then we had a month of torrential rain, and just as the weather is getting nice, it’s already time for the State Fair.

This also means that corporate, partnership, trust and estate tax returns that are on extension are due in a mere three weeks. If you’ve not gotten started putting that information together, now is the time to start.

As fall approaches, this is also a good time to consider tax planning for the year. With more than half the year passed, projections now can provide great insight both into how your taxes will look come next April, as well as reveal tax saving possibilities with time to get them implemented.

Lastly, if you have kids going off to college this fall, know that there can be some great tax breaks to dull the pain of college expenses. Keep your receipts for required books and fees, and those, along with a 1098-T that the college will send in January, will allow your CPA to get the most out of education tax savings.

About the author

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting.

His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006.

He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.

Tax Breaks for School Expenses

As summer begins to draw to a close, students of all ages are preparing to head back to school, and parents are shelling out money for everything from school supplies to tuition and fees.  This presents a great opportunity to summarize the various education-related tax benefits that are in place for these and other expenses.  Even though this benefit won’t be seen until tax time, it’s nice to know all this spending may result in some tax breaks.

Minnesota K-12 Expenses

Minnesota offers two different benefits for K-12 expenses; a subtraction (deduction) from income, and a credit against tax.

The subtraction allows for up to $1,625 of K-6 expenses and $2,500 of 7-12 expenses per child to be deducted from income before calculating Minnesota tax.  Some of the items allowed for the subtraction are listed below, though this is not a complete list.

  • Private school tuition
  • Fees for all-day Kindergarten
  • Music lessons
  • Tuition for summer camps which are primarily academic in focus, such as fine arts or language

For some, claiming a credit against tax would provide a greater benefit.  The credit is allowed for those with incomes between $37,500 and $43,500, depending on the number of children in the household.  In this case, the same expenses above that qualify for the subtraction qualify for the credit, with the exception of private school tuition.

As always, we’re here to help with areas like this, as we have been for nearly 40 years.