There are many tax benefits to a 529 plan to save for a child’s college. Money in this account can now be used to pay for private elementary and high school education expenses as well. This plan can save parents plenty as the money invested and withdrawals are tax-free when used for qualified education expenses. Up to $10,000 can be withdrawn from the 529 annually to pay for private elementary or secondary school.
The biggest change to the new W-4 Form, debuting in 2020, is that there are no longer withholding allowances. Previously, more allowances claimed would mean that less of your paycheck would be taken for taxes. Instead, questions such as filing status, family income, dependents and the tax deductions that you plan to claim will be asked to determine your withholdings.
For small business owners and other self-employed individuals or contractors, there are many tax deductions available. These include things such as a home office, internet, phone, office supplies used and even business travel expenses. By itemizing these items on your tax return, you can see a substantial savings.