Can a taxpayer claim a deduction in Iowa for contributions made to another state’s 529 plan? The short answer is no.
The rule is, you can take a deduction on your Iowa return of up to $3,239 (in 2017) per beneficiary. A beneficiary does NOT have to be your own child. I can be anyone, including yourself, or even someone who’s not related to you.
Iowa has changed a rule relating to when taxpayers can deduct contributions to College Savings Iowa (Iowa’s Section 529 Plan).
College Savings Iowa refers to a tax-advantaged way for Iowa residents to save for college expenses. It’s a type of 529 Plan, where money going into the plan is not tax deductible (for federal taxes) but money coming out not taxed as long as it’s used for qualifying expenses.
The term “529 Plan” is a generic name given to tax-advantaged savings accounts for college expenses.
The amount of deduction you can take for contributions to a “College Savings Iowa” program has increased by $54 for 2011. The maximum deduction is now $2,865 per child, up from $2,811 in 2010. The deduction limit is per parent, per child, so a married couple with two kids could deduct up to $11,460 in […]
One way to save for your children’s or grandchildren’s college tuition is through a “529 Plan.” A 529 Plan allows for tax-free earnings on investments, and distributions from the plan are tax-free as long as the distribution is used for college expenses. As an added bonus, Iowa allows a tax deduction for contributions to an […]