The Ladder

A Blog from New America's Asset Building Program

529 Tax Benefits Vary Widely Across States

Published:  December 5, 2011

The Wall Street Journal has a good, foundational piece up on the varying nature of state tax benefits in the various 529 programs offered by the states. Here's Annamaria Andriotis

Most states offer a tax deduction. For one child, a married couple's annual write-off is capped at levels ranging from $250 (in Maine) to $26,000 (in Pennsylvania), says Joe Hurley, founder of Savingforcollege.com, which tracks 529 plans. Four states—Colorado, New Mexico, South Carolina and West Virginia—don't have annual deduction limits, but cap total deductions over time for each child. The limit can be as much as $318,000 (in South Carolina).

Mark Huelsman proposed reforming existing federal tax credits in order to help smooth over some of the variability among states in promoting college savings.

Here's a good map that accompanied the WSJ piece:

 

Join the Conversation

Please log in below through Disqus, Twitter or Facebook to participate in the conversation. Your email address, which is required for a Disqus account, will not be publicly displayed. If you sign in with Twitter or Facebook, you have the option of publishing your comments in those streams as well.