Are you looking for a last-minute gift or tax deduction this holiday season? Get both by contributing to a CollegeChoice 529 Direct Savings Plan, sponsored by the Indiana Educational Savings Authority.
Taxpayers who contribute to a CollegeChoice 529 Plan may be eligible for a 20 percent state tax credit, up to a maximum of $1,000, for contributions made before December 31. Anyone, including grandparents, other family members, and friends can contribute to an existing 529 plan or open a new account for anyone they choose and receive the tax credit on their contributions.
Need help dropping a hint? The Plan has teamed up with Ugift to allow account owners to share a unique contribution code through email, social media, printed invitations, and in person.
Want to spread the joy? Contributions may be made to multiple accounts to receive the tax credit. For example, if a taxpayer contributes $1,000 into each of his five grandchildren’s eligible 529 plans (for a total of $5,000) before December 31, he would be eligible to receive a $1000 tax credit on his individual Indiana income tax for the tax year 2017.
While there are many 529 college savings plans available both in Indiana and nationwide, only contributions made to the CollegeChoice 529 Savings Plans are eligible for this credit. Tax credits provide a dollar-for-dollar reduction of your income tax liability. Tax deductions lower your taxable income, and they are equal to the percentage of your marginal tax bracket.