Saturday, December 21, 2019

Potential State Income Tax Deduction

Potential State Income Tax Deduction
In some cases you can get a state income tax deduction if you contribute to your home state’s 529 plan. You can find a complete overview of each state’s allowed deduction here.

Keep in mind that you’re allowed to use a 529 plan from any state, not just your own. So whether or not your state offers an income tax deduction, you can choose to use another state’s plan if you think it’s a better option.

Related: The Best 529 Plans in America

1 comment:

Though there are some exceptions for instances

like scholarships, for the most part money within a 529 plan will be taxed and penalized if it’s withdrawn for anything other than qualifie...