The 2015 tax filing deadline is just weeks away, but families still have time to take advantage of the state’s 529 plan and invest money for their child or grandchild’s education, while also reaping potential tax benefits on their 2015 state income tax return.
Georgia residents who make a contribution to a Path2College 529 Plan before the tax deadline each year are eligible for a state income tax deduction on contributions of up to $2,000 per year, per beneficiary, regardless of their annual income. (Please note that a transfer of funds from another state’s 529 plan is not eligible for the Georgia income tax deduction. Recapture provisions apply.)
Any earnings in the Path2College 529 Plan are also federal and Georgia income tax-deferred and withdrawals for qualified higher education expenses, which may include tuition, fees, books, supplies and equipment required for enrollment, such as computers and related technology such as Internet access fees, software or printers, are federal and Georgia income tax-free. Contributions made to a Path2College account may reduce the taxable value of the account owner’s estate. Consult your tax advisor.
The deadline make a 2015 Path2College 529 Plan contribution is April 18.
To establish or contribute to a Path2College 529 Plan account, or for more information about the Path2College 529 Plan, visit www.Path2College529.com.
