Ashley Matthews | Tax Credits | Ohio Accounting Podcast
Ashley Matthews joins Mark Van Benschoten to discuss what tax incentives are available for parent on episode 37, “The World’s Cutest Tax Deduction,” on unsuitable on Rea Radio.

Attention parents! Nobody ever said raising children was easy … or cheap, which is why the IRS provides a variety of tax breaks for families to help ease the financial burden. Ashley Matthews, mother of three and a tax manager at Rea & Associates, has some insight you are going to want to hear.

On episode 37, The World’s Cutest Tax Deduction, Ashley joins Mark Van Benschoten, to discuss the various forms of tax relief available to parents, particularly when it comes to putting money aside to offset the cost of higher education. For example, if you claim the American Opportunity Credit and the Lifetime Learning Credit on your taxes, you can receive a break on your out-of-pocket expenses – not to mention the deductions you can receive to help pay for tuition and fees. Additionally, Ashley explains that financial aid and scholarships are always 100 percent tax free – so don’t fear the tax man when you learn that your son or daughter just received that full ride you’ve been working toward since their infancy. Then, of course, we couldn’t talk about college savings strategies without bringing up the popular College Savings Plans or the 529 Plan, which gives parents and others the opportunity to save the funds today to receive tax-free growth of those funds over the course of 10-15 years (for example). It’s also important to note that most of these tax incentives are applicable to those seeking post-secondary education, trade and technical training or a professional degree.

If you are struggling to hold down a full-time job while raising young children, you will be happy to learn that incorporating a Dependent Care Account into your financial strategy, can give you a little relief as well. This type of account allows married couples and single parents the opportunity to set aside $5,000 and $2,000 respectively, per household, per year, pre-tax. Additionally, Ashley explains, Dependent Care Expenses provide you with a dollar-for-dollar qualified credit on your tax return!

A word of caution. … Navigating an optimized educational tax savings strategy can be difficult due to its complex nature. Therefore, it’s advantageous to consult with a tax expert on the matter to best weigh options that can help you optimize your family’s short- and long-term tax strategies.

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official transcript

Click here to read the official transcript for episode 37: the world’s cutest tax deduction.