Kansas City Area Private High School Costs Jump To Record LevelsSubmitted by Castlebar Asset Management on April 18th, 2018
Cost creep is something parents have become accustom to when paying for children’s education. For the upcoming 2018-2019 academic year average costs are exceeding $14,000 to send a child to private high school in Kansas City for the first time. While the headline number may surprise some, prices only rose 3.1% over last year. This is the smallest increase we have seen in the four years of tracking high school costs. The good news is there are now additional strategies to pay for your kid’s private high school!
The average cost to send a child to a private high school in Kansas City is now $14,084. This is up from $13,825 last year. Only one school, Pembroke Hill, saw overall prices decrease due to changes in technology, supplies and activity fees. The range of price increase were from 0.23% to 9.5%. All schools raised their base tuition rates for the 2018-2019 school year. Base tuition increased on average 3.5% over the prior year.
Despite the news that high school costs are headed higher there are now more options to pay for private high school. The new tax law passed at the end of 2017 allow for 529 accounts to be used on any approved educational expenses. This includes private K-12 education. You can take up to a $10,000 distribution each year, per child to pay for private high school. This can be used on tuition, fees or books.
Both Missouri and Kansas allow for 529 distributions to be used for private high schools, although not all states allow for their use. If you are like most parents and not saving in advance for private high school, you can still use a 529 account for your advantage. In Kansas, you can make up to a $6,000 contribution per child and in Missouri you can make up to a $8,000 contribution per child. It is advantageous for you to put your private high school tuition into a 529 temporarily and then pay your high school tuition bill. Considering the highest income bracket in Kansas is 5.7% (2018) and 6.0% (2018) in Missouri you can save yourself some money with this extra step.
If you are contributing to a 529 account for your kids college fund you will need to track those contributions along with any high school tuition money you route through the 529. You can contribute more than the $6,000 in Kansas and $8,000 in Missouri, but you will not get state income tax deduction for the extra amounts. You will want to make sure you don’t contribute over $15,000 otherwise you run into gift tax issues.
This is a new financial planning option. The rules could always change but for 2018 this seems like a great way to save a little on your taxes while paying for private high school.
We gather information from each schools’ website. We look at the full cost of sending one student to school. This includes tuition and different fees like activity, supply and technology. If there is a different tuition rate for church members or other affiliation, we defer to the lower rate. Many schools offer discounts or reduced prices for multiple students or family rates, but we did not factor them into our calculation.
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