Timely and Relevant News: Tax Season and 529s
Tax season is here and it's also the time of year that many households gather all their important financial information. As you prepare to file your taxes, there are many tax strategies and important details to consider.For example, did you contribute to a 529 account for your children, grandchildren or any other family members? A 529 plan is a valuable tool that may be used to save money for education, including college tuition and certain related expenses as well as up to $10,000/year of K-12 tuition.
Many states offer state income tax deductions or credits for contributions to a 529 plan. The amount of your 529 plan state income tax benefit will depend on where you live and how much you contribute to a 529 plan during a given tax year. If you are contributing to a 529 plan, please make sure you speak with your tax advisor about the possibility of a state income tax benefits.
On a related topic, our team will soon be hosting an upcoming virtual event, Planning for College - A Fresh Look at How to Save Both On and For The Cost of College. We invite you to save the date - Thursday, March 25th at 4 pm ET. More information and virtual registration regarding this event will be shared soon.
We encourage you to also visit savingforcollege.com for more information on 529s or contact us at 302.234.5655 with any questions.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.