By Gail MarksJarvis
CHICAGO (Reuters) – All that tuition you pay has one silver lining: tax breaks.
If you want to make sure to be able to claim the most possible when your tax return is due in April, then you may want to make some moves now to prepay some bills or to max out your retirement accounts to lower your income.
* If you have young kids
Federal tax law changes this year let families use up to $10,000 per year from a 529 college savings plan to pay private school tuition. But beware: Not all states mimic the new federal rules, and you could be hit with state tax penalties or have to pay back past state deductions or credits. Check your state (https://
If your state does copy the new federal law and rewards 529 contributions annually, there might be a new tax opportunity. People can spend some 529 savings for K-12 tuition each year and then replace the sum with new contributions, said Boca Raton, Florida, financial planner Sean Moore.