Financial Figures

from Valley Business FRONT, Issue 144, September 2020

Making Long-Term Care Decisions Easier

Back to . . . do we even know where we’re going?

Traditionally, this is back to school time in the US. We’re in a whole different world these days, though. Shopping this year isn’t about clothes and notebooks, but instead about buying electronics and furniture. According to the National Retail Federation, we’re set to hit over $101 billion for K-12 and college spending this year.

That’s a new record and the first time crossing the $100 billion mark. A big reason for this is additional distance learning costs. There’s also the confusion factor. At the time of this study (mid-July), parents didn’t know what they needed to shop for. In many ways, they still don’t. We’re wavering between virtual and physical classrooms, still unsure of how pandemic movements will affect our lives as we used to know them. Remote learning isn’t cheap.

Record spending on back to school

According to the annual survey by the National Retail Federation and Prosper Insights & Analytics, parents plan to spend almost $790 on their kids in grades 1-12. That tops last year’s spending by almost $100. It also breaks a record set in 2012. College students cost more, with back to school spending projected at over $1000 per family. That cost sets a new record too.

Where are they spending? The survey says 36% on laptops, 22% on speakers and headphones and 17% on non-computer items including desks and chairs, calculators, and workbooks.

Think about taxes now

What a lot of people aren’t considering as they scurry to gather supplies, are tax strategies to help lessen the burden of kids learning from home. There are creative ways to deduct things like childcare costs. If you’re forced to work from home, your home office expenses can offset taxes owed. It all depends on how you set things up. At a time when our world is changing in ways we never would have imagined, it’s a good idea to reassess your tax planning strategies. There are creative approaches for tax deductions that may help you recover at least some of the costs of this new normal. Of course, that requires sitting down with your tax advisor now, so you can be strategic about how you plan for the 4th quarter.