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Question for the Money Doctors

Question submitted on Apr 26, 2010.

Question

I have a Child who will enter college in the year 2012, my tax information for 2011 will be used to determine if she will quailfy for different types of grants, etc. Is there anything I should do differently this year (2010) for the filing of my 2011 tax year?

Answer

In general to the extent possible, you will want to minimize the income in 2011.  If you are self employed or are a business owner you can many times manipulate your income among tax years by; your accounting method (cash vs accrual basis), when you buy equipment, etc.  Also, don't sell anything that will generate capital gains such as selling investments etc.  So, do everything you can to minimize your income in 2011.


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