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Tax Season Resources

Tax-season-tips

529 Contributions can be deducted from state income taxes

Now that it is January, tax documents from 2020 will be arriving in the mail soon. As a reminder, contributions to 529 Plans generally allow a state income tax benefit. Typically, this is a deduction against state income tax up to a certain amount, but the tax benefit varies among states. Because there are no 529 Plan tax forms for contributions, this tax benefit can easily be overlooked. If you make a contribution to a 529 Plan, make sure you provide your tax preparer with a copy of the December 31, 2020, statement, which should show the amount contributed to the account for 2020.

Click here to view the 2020-2021 Tax Reference Guide

Retirement Account Contribution Limits

 

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