Nebraska hikes 529 tax deduction limit

Nebraska Gov. Dave Heineman has signed LB 338 into law, increasing the annual deduction cap on the Nebraska state income tax deduction for contributions to a Nebraska 529 plan.

The deduction increases from $500 to $2,500 for married taxpayers filing separate returns, and from $1,000 to $5,000 for all others. The change is effective beginning with the 2007 tax year.
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