education

Starting with the 2021 tax year, IRS forms K-2 and K-3 are new schedules that may need to be included with 1065 (Partnerships), 1120S (S Corporations), or 8865 (Certain Foreign Partnerships) filings. These are all pass-through entity filings that include Schedule K-1, which reports a partner’s or shareholder’s share of the entity’s profits, losses, deductions, and credits for the year, and the K-2/K-3 schedules are an extension of that. Specifically, these forms go into greater detail regarding Read more [...]

A 529 Plan is an investment account that offers tax benefits when used to pay for qualified education expenses.  Investments grow tax free and withdraws are tax- and penalty-free as long as they are used to pay for eligible expenses. Most states offer their own 529 plan; you don’t have to be a resident of the particular state in order to establish an account.  Many states also offer a state income tax deduction or tax credit for 529 plan contributions.  There are even a handful of states Read more [...]