A lot can happen in a year, and by this point, you are more than halfway to the next filing season. The best part is that there is still time to take steps that work in your favor. The trick is knowing which ones to use.
Can Back-to-School Season Actually Save Me Money at Tax Time?
It sure can. Education credits, 529 plan contributions, the Child Tax Credit, and even dependent care credits can all add up to real savings. Looking at your options now gives you a chance to make adjustments before year-end so you can lower your bill and keep more of your money with your family.
Let’s Open the Tax Book on Your Savings
Now that we know back-to-school season can open the door to savings, think of this as your study guide to the credits and deductions that can really pay off at tax time.
1. Tax Credits That Do Their Homework
Got a kid in college? Or maybe you’re hitting the books yourself? Either way, the IRS has some credits that can put money back in your pocket.
- American Opportunity Tax Credit (AOTC): Worth up to $2,500 per eligible student for the first four years of college.
- Lifetime Learning Credit (LLC): Worth up to $2,000 per tax return for tuition and fees, no matter your age.
Keep good records. Receipts for tuition, fees, and even required books or supplies could be your ticket to real savings. One quick note. Starting in 2026, students will need a valid Social Security number to qualify for these credits. Keep that in mind for future planning.
2. Extra Credit for College Savings
College may be years away, but building up savings now can lighten the load later. A 529 plan allows your money to grow tax-free when it is used for qualified education expenses. In many states, contributions can also lower your state tax bill.
Another perk? You don’t need to put in a huge amount at once. Consistent, smaller contributions can add up over time and give both you and your future student some financial breathing room.
3. The Child Tax Credit: An A+ for Families
The Child Tax Credit is available for children under 17 and is worth up to $2,200 per child in 2025, with up to $1,400 refundable. While you won’t claim it until you file, knowing about it now helps you plan ahead for your family budget.
4. Credits for Care: After-School, Daycare, and More
Paying for after-school programs, daycare, or even certain day camps might qualify you for the Child and Dependent Care Credit. The care must be necessary so you, or you and your spouse if filing jointly, can work or look for work.
Hold onto your receipts and track what you spend. When tax time comes, you will be glad you did, especially if it helps lower your bill.
5. Built-In Breaks at the Store
Not every money win comes from credits or deductions. In many states, certain purchases are already tax-free all year. For example, in Pennsylvania, most clothing and everyday footwear aren’t taxed.
That means some of your back-to-school shopping may already be giving you a break without you realizing it. Knowing what qualifies as tax-free is an easy way to stretch your budget a little further.
Why Start Now?
Starting early is how you ace the test, and taxes are no different. Planning ahead gives you time to make choices that can lower your bill before the year wraps up. It also helps you keep track of things like childcare costs, education receipts, or 529 contributions as they happen, instead of scrambling at the last minute. Most importantly, it sets you up to head into tax season prepared, not stressed.
Crash Course Complete: Time to Put It Into Practice
Back-to-school is not just about new supplies and busy mornings. It is also a checkpoint to be sure you aren’t missing out on valuable tax benefits. Even small opportunities can stack up to meaningful savings once it’s time to file.
No pop quizzes here. Our team can walk you through the details and help you take advantage of every opportunity to save. Consider us your study partners, so reach out today!
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