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Education

Educational technology, learning tools, and managing education-related finances

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9 min read

The Student FICA Exemption: Who Qualifies, and Where Payroll Gets It Wrong

Wages paid to a student by the school they attend are exempt from the 7.65% FICA tax under IRC Section 3121(b)(10), but only when the worker clears all four Revenue Procedure 2005-11 tests — at least half-time enrollment, under 40 hours a week across all campus jobs, no professional role, and no career-employee benefits. This guide covers the safe harbor, the five-week break rule, the graduation cliff, and how to correct withholding in either direction.

Mike Thrift

payrolltax-compliancewithholding
7 min read

Deferred Revenue for Independent Educational Consultants: Why an $8,500 College Counseling Package Isn't Income Yet

Independent educational consultants collect $4,000–$12,000 multi-year package fees long before the work happens. This guide explains why non-refundable contracts don't justify booking fees as income at signing, how to allocate revenue across service phases (e.g., 15/30/40/15), and how a two-account deferred revenue setup keeps your books honest.

Mike Thrift

revenue-recognitionaccrual-accountingconsulting
8 min read

Driving School Bookkeeping: Dual-Control Depreciation, Licensing Renewals, and Per-Lesson Revenue

A driving school's books hinge on three quirks most owners miss - a dual-control training car is two separate depreciable assets, instructor licensing adds $2,000+ in recurring annual compliance costs, and revenue must be tracked by lesson type to see profit per instructor-hour. Here's how to structure the chart of accounts, handle vehicle disposal correctly, and run a simple monthly close.

Mike Thrift

bookkeepingsmall-businesschart-of-accounts
7 min read

The New Federal Scholarship Tax Credit (ECCA): What Small Business Owners Should Know Before 2027

The Educational Choice for Children Act creates a $1,700 federal income tax credit for cash donations to K-12 Scholarship Granting Organizations, starting with the 2027 tax year — but only in states that opt in. Here is how the nonrefundable, cash-only Section 25F credit works, the five-year carryforward, the 90% pass-through rule for SGOs, and why pass-through business owners should track their state's participation through 2026.

Mike Thrift

tax-creditstax-planningcharitable-giving
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