Is it possible to defer income for a child's education

Question

I have a 16 year old who will be going to college soon.

I received a job offer that I have not accepted yet and it includes an annual bonus.

Before accepting the offer I wanted to find out what my options are for the annual bonus with regard to college education.

Is there anything special that I can do here? For example, can I leave it at the company until it's needed so that it's not considered when I am evaluated for financial aid? Are there certain company perks that would help (similar to commuter expense or medical expense account)?

Thanks.

Answer 1

To break down the question as best I can, you are concerned about end up in a higher tax bracket before a financial aid assessment?

"... can I leave it at the company until it's needed so that it's not considered when I am evaluated for financial aid?"

Likely not. They are expecting to pay it out as payroll. A small family company might give you that flexibility. Sometimes large companies allow you defer across a tax year (one bank I worked for allowed a shift from December to January for this exact purpose), but eventually they stopped that as it made a tax accounting nightmare for them.

There may well be perks, as you also ask. Your company health benefits commonly extend to dependant children. If they cover dental, drugs, co-payments and the like, that may well be a significant benefit to you and your child.