turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

savy3
New Member

LLC & college saving

I just started an LLC.

1. I am the only employee. Would I have to file individual taxes and business taxes? If I do have to file two different taxes how would I document the income? 

2. Would it be better to use a TurboTax program for the above situation or face to face with an expert?

3. I’ve started saving for my kids  college education.  I am using the path to college offered by my state how would I document that on my taxes?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
Hal_Al
Level 15

LLC & college saving

Q. I’ve started saving for my kids  college education.  I am using the path to college offered by my state how would I document that on my taxes?

A. There is no federal deduction for making a contribution to a 529 plan. Some states allow a deduction on the state return. If your state is one, it will come up in the state interview; usually in the "Here's how (your state) handles income differently" section. For  Indiana it’s at  credits and taxes. Scroll down and select Indiana CollegeChoice 529 Plan.

For a state list of eligible plans, see: https://www.savingforcollege.com/529-plan-details

http://www.savingforcollege.com/compare_529_plans/index.php?page=compare_plan_questions&plan_questio...

 

The federal tax break comes in the future, when you take the money out to pay for education.  All earnings (interest, dividends and capital gains) over the years is tax free if the distribution is used to pay for education, including room & board.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies