Utah reverses stance on married couple tax deduction

In 2003, the Utah State Tax Commission informally indicated that the deduction cap for 529 contributions into the Utah 529 plan by a married couple filing jointly is twice the cap amount for a single individual.

Now the Commission has changed its mind and in a private letter ruling indicates that the deduction cap is applied per individual contributor and that both spouses must contribute to their own 529 accounts to receive the maximum possible deduction. Opinion No. 06-015 (August 3, 2006).

The new decision will be applied prospectively beginning with the 2007 tax year.
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