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In the News: 4 Helpful Quotes from CPAs

Cpa-quote (3)I read so many great quotes from CPAs every day and have such a limited space to summarize them on the blog– it can get to be a bit frustrating.  As I began drafting my bi-weekly ‘In the News’ post, I decided to switch things up this week.

I present to you four helpful quotes from CPAs. Hey – everyone can use a little help now and then.

As Kelli Grant reports in MarketWatch, going to summer camp may be a rite of passage for children, but for parents, it seems more like an initiation into the woes of tuition payments.

What parents might not know is that camp expenses can translate into a tax break.

Sending a child age 12 or younger to a day camp is a qualified expense for the child and dependent care tax credit, says Melissa Labant, CPA, director of tax advocacy for the AICPA. Parents can claim up to $3,000 in unreimbursed expenses for one child per year ($6,000 for two or more children), for a maximum credit of $1,050 ($2,100 for two or more) depending on income. “The rules are pretty straightforward,” Labant says. “The only catch is that it cannot be an overnight camp.”

A recent article on Dimespring noted that roughly 1 in 4 married couples between the ages of 18 to 34 bought their first house together before getting married, according to a recent survey by Coldwell Banker Real Estate. But buying a house as an unmarried couple has some potential pitfalls, says Tracy Stewart, CPA and member of the AICPA’s National CPA Financial Literacy Commission.

“Before buying the house, have an honest talk about how the two of you will handle financial matters…Better yet, have more than one honest talk. Make it a habit to talk monthly about household expenses, repairs, maintenance and goals,” said Stewart.

Students go to college to get ahead, but many are falling behind in life’s next stages because of burgeoning school debt, according to a national telephone survey of student loan borrowers and their parents conducted for the American Institute of CPAs by Harris Interactive.

WFMY News 2 in Greensboro, NC spoke to Ernie Almonte, CPA, CGMA, chairman of the AICPA’s National CPA Financial Literacy Committee and Clare Levison, CPA, member of the Commission about steps students can take to manage their loan debt and additional strategies students and their parents can consider when it comes to paying for college.

Levison advises recent graduates who are already in debt, not to “dig the debt hole any deeper by incurring credit card debt or other debt.” Instead, graduates should “cut their spending, so they can pay as much on their student loans as they can, as quickly as they can.”

Almonte advised families with children to begin thinking about the cost of college as early as possible.

"If parents, when they're having children, starting saving from birth and moving forward, you can open up a 529 account and you can get tax-free earnings from that," he said.

Share the most helpful quotes you’ve read from CPAs in the news lately in the comments section below.

 , AICPA Staff.

 

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