Amongst the many things to consider at years-end is a contribution to a 529 college savings account. (I just made my contribution for kid #3.) In addition to the federal tax-free growth towards qualified college expenses, more than 30 out of 50 states offer some level of tax deductions for 529 contributions. Some require you to contribute to the official in-state plan, while others let you contribute to any plan.
SavingForCollege.com offers a visual comparison of these state tax benefits in the following infographic. They assume a couple filing jointly with a $100,000 taxable income and contributing $100/month for each of two children. The darker the blue, the bigger the benefit.
This may not apply exactly to your situation, but it can still provide you a quick take as to whether you should investigate further. They do have a calculator that churns out specific numbers, but unfortunately you must pay for a premium subscription. Here are some related posts:
- How Much Do Other Parents Help Pay For College Tuition?
- Morningstar Top 529 College Savings Plan Rankings 2017
- Morningstar State-by-State 529 Tax Benefit Comparison 2015 – Provides a different perspective, but 2015 numbers may be outdated so please confirm independently.
© MyMoneyBlog.com, 2017.