Partial Transcript more after the jump…
Its time for another Daily Scholarship and Financial Aid Tip in about two minutes, by JR The College Money Man
This is episode 40 and today we are talking about How to Maximize Your EFC Through Tax Deductions;
The Expected Family Contribution, or EFC is a number parents and students need to be as low as possible. And the key to getting that number down begins with the yearly tax return. The number used primarily by the Free Application for Federal Student Aid is parents and students Adjusted Gross Income or AGI. This is the number every tax payer calculates after subtracting all legal deductions from gross income. So to get AGI down, parents and students need to get their deductions up!
So here’s a quick tip: Never take the straight line deduction unless you have to! Do the math and be absolutely sure you calculate every deduction your legally permitted before choosing a standard deduction. Most tax prep programs like TaxCut by H&R Block and others like it will figure this out for you and offer guidance on the largest deductions. SO before you file your taxes, make sure you take every deduction you can, to ensure you or your student can get the most financial aid possible.
Have a problem with financial aid or scholarships? go ahead and send JR a tweet @ CollegeCashMan or call him at 831-275-0182. Thanks for listening to JR’s Two Minute Financial Aid Tips at http://www.collegemoneyman.com
The College Money Man Podcast, and JR’s Two Minute Tips are available for subscription for FREE via iTunes. New episodes of 2-Minute Tips are released everyday Monday thru Friday, and our weekly broadcast is released each Wednesday. Subscribe, like, and comment! Download and get your dose of financial aid help on the go.