XQ CPA

The IRS has announced that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program. Under the program, beginning in 2027, eligible taxpayers can claim a federal tax credit for contributions to Scholarship Granting Organizations (SGOs) that provide scholarships for qualified elementary and secondary education expenses. To claim the credit of up to $1,700, a taxpayer must contribute to an SGO located in a state that is participating in the FSTC program and that has submitted a list of qualified SGOs to the IRS. State participation in the program is voluntary. Visit https://bit.ly/4oEtUtP for a list of participating states.

The ultimate success of a business often comes back to decisions made at its inception. If you’re planning to start a business, one key decision is choosing its structure, commonly sole proprietorship, C corporation, S corporation, partnership or limited liability company. In addition to owner liability variations, all have different tax requirements that can affect everything from hiring to cash flow to owner income. Another critical decision is choosing a tax year — either a calendar year or a fiscal year (12 consecutive months ending on the last day of any month except December). Contact us. We can help you make the best decisions for your current situation and your business’s future.