Are 529 contributions tax deductible?
Never are 529 contributions tax deductible on the federal level. However, some states may consider 529 contributions tax deductible. Check with your 529 plan or your state to find out if you’re eligible.
A 529 plan allows you to save for college or higher education while receiving some type of tax benefit. Earnings from 529 plans are not subject to federal tax and generally not subject to state tax when used for qualified education expenses such as tuition, fees, books, as well as room and board. The contributions made to the 529 plan, however, are not deductible.
For more information about 529 Contributions, visit: https://www.irs.gov/uac/529-plans-questions-and-answers
You can claim the standard deduction or itemize deductions to lower your taxable income. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses. You can claim whichever lowers your tax bill the most.
Find out what documents are needed to itemize deductions on your federal tax return with advice from the tax experts at H&R Block.
Learn more about IRS Form 8396 and claiming the mortgage interest credit from the tax experts at H&R Block.
Is your relative a qualifying dependent? Explore your options for claiming relatives on your taxes. Get tax answers from H&R Block.