New Ways to Save on Back-To-School Essentials
Back-to-school shopping is on everyone’s mind, and with current economic conditions, families are looking for any breaks they can get this season.
Access to the latest technology is a necessity for today's college students.
New this year, parents and students have the opportunity to tap into tax-free withdrawals from their 529 college savings funds to purchase computer-related equipment. The American Recovery and Reinvestment Act of 2009 added computer equipment to the list of qualified college expenses for tax years 2009 and 2010. According to www.collegedata.com, this new benefit includes the purchase of “any computer technology, equipment, Internet access and related services to be used by the student or the student’s family during any of the years the student is enrolled at an eligible educational institution.”
Each state has different rules and regulations for 529 plans, so it’s important to research requirements for your individual state. Money must be used for qualified expenses to avoid tax and penalty.
“There’s no doubt that better technology is essential for educational success of today’s students and tomorrow’s workforce,” said Anne Gregory, Director, Education and Government Marketing Programs, Intel Americas. “All students need to develop strong computer skills and have access to the latest technology. This year, families can tap into pre-tax saving funds in order to purchase the equipment students need to succeed.”
More ways to save
To realize the biggest bang for the back-to-school buck, it’s not only what you use to buy, but also what you buy. For maximum savings, experts from Intel suggest considering technology that provides the latest functionality as well as lower long-term operating costs. Paying attention to factors such as energy use and selecting computers that are ENERGY STAR® qualified can help save money over the long run, according to Intel experts. Functionality and attributes such as processing speed are also important for long-term value.
“It’s important to choose a computer that will keep up with the development and the demands of students as they progress through their college career,” said Gregory. “Initial purchase price is definitely a factor to evaluate, but if the technology needs to be replaced sooner rather than later because it can’t keep up with increasing functionality demands and workload requirements, it could result in higher costs down the road.”
For more information on computer equipment and 529 college saving plan eligibility, please visit Intel on Facebook.
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