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Investing in the Future with a 529 Education Plan

RogerRossmeisl

These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis. You don’t get a federal income tax deduction for a contribution, but the earnings on the account aren’t taxed while the funds are in the.

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Using an Income Tax Preparation Service: Is It Worth the Cost?

MyIRSRelief

When it comes to tax season, many people are faced with the decision of whether to prepare their own taxes or use an income tax preparation service. While it may seem like an added expense, there are many benefits to using a professional tax preparation service that make it well worth the cost.

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How SUI and State Income Taxes Affect Small Businesses

CPA Practice

Inevitably, your clients with growing businesses will want to hire, so you’ll be better able to help them if you have a clear understanding of the differences between SUI (state unemployment insurance) and SIT (state income tax) and how they affect your clients’ businesses. What is SIT Tax?

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Alabama Amends Alabama Accountability Act – Increased Alabama Income Tax Credit Available

Dent Moses

In the years since 2018, many taxpayers have exceeded the cap and have paid large amounts of state income taxes that weren’t deductible for Federal purposes. Instead of paying non-deductible SALT payments, many taxpayers would prefer to make a donation that will be used to improve educational opportunities for disadvantaged youth.

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New Option for Unused Funds in a 529 College Savings Plan

RogerRossmeisl

Contributions to these plans aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a 10% penalty.

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Income Tax Deduction or Credit? It Matters

CPA Practice

Suppose you can claim a tax deduction or a credit on your personal federal income tax return. For instance, the American Opportunity Tax Credit (AOTC) is 40% refundable. Conversely, the other tax credit for higher education expenses—the Lifetime Learning Credit (LLC)—is 100% nonrefundable. It’s a no-brainer.

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Governor Ivy Signs Bill to Exempt Overtime Pay from 5% State Income Tax

Dent Moses

The Legislative Services Agency estimated the bill will cost the Education Trust Fund $34 million for fiscal 2024. The post Governor Ivy Signs Bill to Exempt Overtime Pay from 5% State Income Tax appeared first on Dent Moses, LLP. Now begins the task of implementation. Click HERE for a copy of HB 217.