TAXLine

National 529 Day – Did You Know?

If you put money into a 529 education savings plan, earnings may be withdrawn federal income tax-free when used for qualified education expenses. Qualified expenses can include tuition, fees, books, supplies, computers, and for students enrolled at least half-time, certain room and board costs.

While 529 contributions are not deductible for federal income tax purposes, many states offer a full or partial state income tax deduction or credit for contributions. Some states and plan sponsors may also offer special incentives around National 529 Day.

Recent law changes expanded the use of 529 plans. In 2026, up to $20,000 per year, per student, may be used for qualified K–12 education expenses at public, private, or religious schools. Prior years were generally limited to $10,000 annually.

Receiving Online Payments - Did You Know?

If you are self-employed and receive payments through online payment processing platforms, take care to separate business and personal transactions. You can do this by setting up separate business accounts on the platforms, or by using features that allow you to specify the purpose of payments. Otherwise, the platforms may overreport your income.

IRS Online Business Accounts Now Available to Partnerships & Tax-Exempt Entities

The IRS has expanded its Business Tax Account (BTA) service, which enables businesses to handle many federal tax matters online. Previously, only sole proprietors, S corporations and C corporations could use the BTA platform. Now, partnerships (including LLCs that file taxes as partnerships), along with many tax-exempt organizations, can benefit from the convenience of a BTA as well.

Tasks that can be readily completed through the BTA system include checking tax balances, making payments, viewing payment histories and downloading digital IRS notices. In addition, BTA users can access payroll and income tax return transcripts, seek help with compliance concerns, or verify the accuracy of a business name or address on file with the IRS.

Many government entities, including tribal governments, also qualify to use the expanded BTA service.

IRS Business Tax Account: https://www.irs.gov/businesses/business-tax-account