ClearPath - St. Joseph

08/06/2026

Back-to-school season isn't just about school supplies and new schedules; it can also be a good time to review your family's tax strategy.

Depending on your situation, you may be eligible for tax benefits such as:

- The Child Tax Credit
- Education tax credits, including the American Opportunity and Lifetime Learning Credits
- Tax-advantaged savings through a 529 plan
- Education-related deductions available in certain situations

Understanding which benefits apply to your family can help you maximize available tax savings and avoid missing valuable opportunities.

Questions about which education-related tax benefits you may qualify for? Our team is here to help. Contact ClearPath to start the conversation before year-end.

08/05/2026

This week we are introducing Cory Lagerstrom, CEO of ClearPath!

Cory has been with ClearPath for a little over 3 years and says he enjoys, "The people. The daily challenge of tackling the next issue. The journey will be more fun than accomplishing the goal."

His passion for helping clients and supporting our team continues to shape the culture and vision of our firm.

Outside the office, Cory enjoys hunting and working on his farm, along with listening to vinyl with his kids. Here's something you may not know about him: He was the spelling bee champ for Arkansas City, KS in the 4th grade.

A few of Cory's favorites:
☕ Coffee or Tea: Coffee
🏖️ Beach or Mountains: Mountains
🌅 Early Bird or Night Owl: Early Bird
🍫 Sweet or Salty: Sweet
🐶 Dogs or Cats: Dogs

We're thankful for Cory's leadership and all he does for our team and clients every day!

08/04/2026

It's August, which means there's still time to make an impact on your 2026 tax return.

Many tax-saving opportunities must be implemented before the end of the year.

Waiting until tax season often means it's too late to take advantage of strategies that could reduce your tax liability.

By reviewing your tax situation now, you have time to:
- Maximize retirement contributions
- Plan for major life or business changes
- Manage investment gains and losses
- Reduce the chance of an unexpected tax bill

The earlier you start planning, the more options you have.

Ready to get ahead? Contact us today to schedule a tax planning consultation, so you can head into tax season with confidence!

08/03/2026

NEW BLOG

Understanding Trump Accounts: What Families Need to Know

Learn how these new accounts work, who may be eligible, and how they compare to other long-term savings options.

Read the full blog here:

For years, families have relied on tools like 529 plans, custodial accounts, and retirement accounts to help build wealth for the next generation. Now, there's another option to consider: 530A Accounts (commonly referred to as Trump Accounts).

07/30/2026

𝗛𝗼𝘄 𝗱𝗼 𝗜 𝗲𝗹𝗲𝗰𝘁 𝗦 𝗰𝗼𝗿𝗽 𝘀𝘁𝗮𝘁𝘂𝘀 𝗳𝗼𝗿 𝗺𝘆 𝗟𝗟𝗖?

If your annual net profit is over $60,000 and your cash flow is steady, an S corporation election can make sense for your business. Here are the main steps to get started:
1. File IRS Form 2553. Submit this within 75 days of the start of the tax year (March 15 for calendar-year businesses) or within 75 days of forming a new LLC. All owners must sign.
2. Set up W-2 payroll. Document a reasonable salary based on the work you perform, your responsibilities, and relevant pay data. Set up payroll to withhold the required income and payroll taxes from your W-2 salary.
3. Separate your accounting ledgers. Keep strict records separating W-2 wages from shareholder distributions.
4. Track your new filing requirements. A calendar-year S corporation generally files Form 1120-S by March 15 and provides each shareholder with a Schedule K-1.

Missed the deadline? You can qualify for late-election relief if you had reasonable cause and meet the IRS requirements, including filing within three years and 75 days of the intended effective date.

Comment S CORP below if you want help figuring out whether the election makes sense and what you’d need to set up.

07/29/2026

𝗪𝗵𝘆 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝘂𝘀𝗲 𝗮 𝟱𝟮𝟵 𝗽𝗹𝗮𝗻 𝗶𝗻𝘀𝘁𝗲𝗮𝗱 𝗼𝗳 𝗮 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗳𝗼𝗿 𝗰𝗼𝗹𝗹𝗲𝗴𝗲 𝘀𝗮𝘃𝗶𝗻𝗴𝘀?

A 529 plan can protect your college savings from annual taxes on dividends and capital gains, with tax-free withdrawals for qualified education expenses.

In a standard brokerage account, dividends and realized capital gains can create a tax bill along the way. Those taxes leave less money in the account to keep growing.

A 529 plan handles your growth differently:
• You contribute money that has already been taxed, so there’s no federal deduction on your return.
• The money can grow without annual federal taxes on dividends or capital gains.
• Withdrawals are tax-free when you use them for qualified education expenses.

Depending on your state, you may also qualify for a state income tax deduction or credit when you contribute.

𝘋𝘰 𝘺𝘰𝘶 𝘤𝘶𝘳𝘳𝘦𝘯𝘵𝘭𝘺 𝘩𝘢𝘷𝘦 𝘢 529 𝘱𝘭𝘢𝘯 𝘴𝘦𝘵 𝘶𝘱 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘬𝘪𝘥𝘴?

07/28/2026

𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗲𝗹𝗲𝗰𝘁 𝗦 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝘀𝘁𝗮𝘁𝘂𝘀 𝗳𝗼𝗿 𝗺𝘆 𝗟𝗟𝗖?

An S corporation election could cut your tax bill by keeping part of your business profit from being subject to the 15.3% self-employment tax.

Under a default LLC, your net profit faces income tax plus the 15.3% self-employment tax.

When you elect S corp status, you split your earnings into two parts:
• A reasonable W-2 salary (subject to payroll taxes)
• Shareholder distributions (exempt from self-employment taxes)

Distributions bypass the 15.3% self-employment tax entirely, which drops your overall tax burden.

Now, running an S corp does come with extra administrative tasks like payroll software, bookkeeping overhead, and corporate return fees.

But once your annual net profit crosses roughly $60,000, your tax savings outpace those extra costs, putting more money back into your business.

𝘏𝘢𝘷𝘦 𝘺𝘰𝘶 𝘭𝘰𝘰𝘬𝘦𝘥 𝘪𝘯𝘵𝘰 𝘢𝘯 𝘚 𝘤𝘰𝘳𝘱𝘰𝘳𝘢𝘵𝘪𝘰𝘯 𝘦𝘭𝘦𝘤𝘵𝘪𝘰𝘯 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘓𝘓𝘊?

07/27/2026

𝗪𝗵𝘆 𝗱𝗼 𝗜 𝗵𝗮𝘃𝗲 𝘁𝗼 𝗽𝗮𝘆 𝘁𝗮𝘅𝗲𝘀 𝗼𝗻 𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿 𝟭𝟱 𝗶𝗳 𝗺𝘆 𝘁𝗮𝘅 𝗿𝗲𝘁𝘂𝗿𝗻 𝗶𝘀𝗻'𝘁 𝗱𝘂𝗲 𝘂𝗻𝘁𝗶𝗹 𝗻𝗲𝘅𝘁 𝘆𝗲𝗮𝗿?

Because when you earn income from a business or side hustle, the IRS requires you to make estimated tax payments on those earnings as you make them, rather than waiting until you file.

The US operates on a pay-as-you-go system. The government expects its share of your income throughout the year, which is why September 15 is the official deadline to submit taxes on what your business earned during June, July, and August.

If you don't have taxes automatically withheld from a paycheck, this is when the IRS collects on those summer earnings.

Want to check your numbers before the deadline? Comment 𝗣𝗟𝗔𝗡 below, and we can look at your withholding together.

07/24/2026

𝗖𝗮𝗻 𝗜 𝗰𝗹𝗮𝗶𝗺 𝗮𝗻 𝗲𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻 𝘁𝗮𝘅 𝗰𝗿𝗲𝗱𝗶𝘁 𝗳𝗼𝗿 𝗺𝘆 𝗴𝗿𝗮𝗱𝘂𝗮𝘁𝗲 𝘀𝘁𝘂𝗱𝗲𝗻𝘁 𝗶𝗳 𝗜'𝗺 𝗮𝗹𝗿𝗲𝗮𝗱𝘆 𝗰𝗹𝗮𝗶𝗺𝗶𝗻𝗴 𝗼𝗻𝗲 𝗳𝗼𝗿 𝗺𝘆 𝘂𝗻𝗱𝗲𝗿𝗴𝗿𝗮𝗱?

You can claim these education tax breaks across different family members on the same return. While you can't claim two credits for the same student in a single year, you can claim the American Opportunity Tax Credit for your undergraduate child while simultaneously claiming the Lifetime Learning Credit for an older child in graduate school.

Just make sure you avoid 529 plan double-dipping. The IRS strictly prohibits using the exact same dollar of tuition to justify both a tax-free 529 distribution and the Lifetime Learning Credit.

To get the full value of both incentives, follow this setup:
• Pay up to $10,000 in qualified graduate-school expenses with funds other than a 529 distribution to secure the 20% tax credit.
• Use tax-free 529 funds for other qualified expenses that aren’t being used to claim the credit.
• Avoid using 529 funds for every dollar of qualified tuition, or you may have no remaining expenses available to claim the credit.

Do you currently use a 529 plan to save for your family's higher education expenses?

07/23/2026

𝗪𝗵𝗲𝗻 𝗜 𝘀𝗲𝗹𝗹 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀, 𝗵𝗼𝘄 𝗺𝘂𝗰𝗵 𝗼𝗳 𝘁𝗵𝗲 𝗽𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗽𝗿𝗶𝗰𝗲 𝗮𝗺 𝗜 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗴𝗼𝗶𝗻𝗴 𝘁𝗼 𝗸𝗲𝗲𝗽 𝗮𝗳𝘁𝗲𝗿 𝘁𝗮𝘅𝗲𝘀?

The short answer is that the deal structure matters just as much as the final sticker price.

If a buyer pushes you into an asset sale, they are trying to buy your equipment and inventory to secure tax write-offs for themselves. The trap for you is that depreciation recapture rules can hit those gains at much higher ordinary income rates.

With a stock sale, they buy your corporate equity instead. If you've held it for over a year, that gain qualifies for long-term capital gains rates, capping the federal hit at 20% plus the 3.8% net investment income tax.

If a buyer forces an asset sale to get their deductions, you can counter by calculating a tax "gross-up." This forces them to raise the purchase price by the exact amount needed to make sure your net, after-tax payout matches what you would have kept in a stock sale.

𝘋𝘰𝘦𝘴 𝘺𝘰𝘶𝘳 𝘤𝘶𝘳𝘳𝘦𝘯𝘵 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘴𝘦𝘵𝘶𝘱 𝘧𝘢𝘷𝘰𝘳 𝘢𝘯 𝘢𝘴𝘴𝘦𝘵 𝘴𝘢𝘭𝘦 𝘰𝘳 𝘢 𝘴𝘵𝘰𝘤𝘬 𝘴𝘢𝘭𝘦?