One of the most popular questions I see around this time of year is whether you can deduct the cost of:
The short answer is no. These expenses are considered personal expenses and are not deductible for federal income tax purposes for students in elementary and high school (I’ll address college and work-related educational expenses later).
There are some ways to mitigate some of these expenses – like participation in a section 529 plan. Check in later in the day to find out more.
Earlier this week, I headed off to the store with school supply check list in hand. Boy, how things have changed since I was a kid. Tops on my list? Latex-free erasers. Pencils with latex-free erasers. Pencil sharpener together with Ziploc bag. The list went on and on. Shopping went pretty well until we hit two snafus – one, the question about which four folders to pick: Hannah Montana or Tinkerbell? Remarkably, my daughter went with Tinkerbell – take that Miley Cyrus! The other? The cash register. Jeez, having kids is expensive any more, and back to school season is the mother of all spending.
I’m not sure how much most parents spend on school supplies, but I can tell you that with three kids, one in preschool, one in Pre-K (yes, there’s a list for that) and one in 1st grade, I’m already starting to feel the crunch. School uniforms, backpacks, lunch bags, they all add up. Add in our little surcharge to the state and local governments (in Philadelphia, we pay 7% – thank goodness we’re not Chicago!) and the costs mount.
Fortunately, there are some states that offer a break at this time of year in the form of a sales tax holiday. After the jump, you’ll find a list of states that are observing a sales tax holiday this year – or those that have no sales tax.
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