Last Chance for 2008 Tax Deductions
2008 is drawing to a close, which means it’s your last chance to get a tax deduction for 2008 if your state offers an upfront tax benefit for 529 plan contributions.
Many states that have state income taxes offer upfront tax deductions, sometimes equal to the amount of money you contribute to your 529 plan. For example, if you contribute $10,000 this year you may be able to deduct that amount from your income when reporting taxes.
To see which states offer upfront tax deductions for 529 contributions, see the 529s.com state guide.
Tags: 529 plans, 529 tax deduction
We had our taxes done a few days ago, and the tax preparer at H & R Block tried to tell me that the only tax advantage of our 529 was that the interest was tax free. I withdrew $5000.00 last year for my sons’ tuition, and am pretty sure that we should be able to write that amount or part of that off of our adjusted gross income, because withdrawls are tax free if qualified. Am I right? I have already been taxed on the money I put into the account since it was not taken out of my check pre taxed. What should I do?