Investigate IRAs, mutual funds or bonds. Tax deductions for 2001 can be gained with certain investments such as annuities and traditional IRAs. Start or add to a college fund for your child. Time allows for earning interest and compounding, so it is never too early to start investing in an education fund. Costs for college have increased steeply over the past decade and are expected to continue rising.
Most states offer state-sponsored college tuition plans and many have tax benefits.
Students and parents who plan ahead will have more options open to them. He explains that the government has held your money interest free over the past year. For those who owe taxes but cannot afford to pay them, back taxes can often be included on CCCS-LA's debt repayment plan. In this program, counselors contact clients' creditors on their behalf and negotiate lower payments and often reduce or eliminate interest. Participants make one monthly payment to CCCS-LA which disburses the payments electronically to each of the creditors.