State income tax deadlines are approaching, but families saving for education expenses may still have time to reduce their 2023 taxable income. Over 30 states, including the District of Columbia, offer a state income tax deduction or credit for 529 plan contributions. Most states have a contribution deadline of the end of the calendar year (December 31) to qualify for a 529 plan tax deduction on their tax return for that tax year. However, taxpayers in the states listed below have until April of the following year.
Click on the state’s name to find out more about the 529 plans they offer.
Georgia
Deadline: April 15, 2024
GA 529 plan tax deduction:
In 2023, contributions up to $4,000 ($8,000 for a joint return) per beneficiary are deductible from Georgia state income tax. Contributions must be made to a Georgia 529 plan to qualify.
Indiana
Deadline: April 15, 2024
IN 529 plan tax deduction:
In 2023, contributions to an Indiana 529 plan can earn a 20% tax credit on up to $7,500 in contributions per year for a maximum yearly credit of $1,500. The maximum annual credit for a married filing separate taxpayer is $750.
Iowa
Deadline: April 30, 2024
IA 529 plan tax deduction:
In 2023, contributions and rollover contributions up to $3,785 per individual, per beneficiary, and up to $7,570 per beneficiary by married taxpayers filing jointly who each make their own contributions are deductible from Iowa state income tax. The account owner must make eligible contributions. Contributions must be made to an Iowa 529 plan to qualify.
Mississippi
Deadline: April 15, 2024
MS 529 plan tax deduction:
Contributions and rollover contributions up to $10,000 for a single return and $20,000 for a joint return are deductible from Mississippi state income tax. Contributions must be made to a Mississippi 529 plan to qualify.
Oklahoma
Deadline: April 15, 2024
OK 529 plan tax deduction:
Contributions and rollover contributions up to $10,000 for a single return and up to $20,000 for a joint return are deductible from Oklahoma state income tax, with a five-year carryforward of excess contributions. Contributions must be made to an Oklahoma 529 plan to qualify.
South Carolina
Deadline: April 18, 2023
SC 529 plan tax deduction:
Contributions and rollover contributions are fully deductible from South Carolina state income tax. Contributions must be made to a South Carolina 529 state plan to qualify.
Wisconsin
Deadline: April 15, 2024
WI 529 plan tax deduction:
In 2021, contributions and the principal portion of rollover contributions of up to $3,860 per beneficiary per year ($1,930 for those married filing separately or divorced) are deductible from Wisconsin state income tax. The principal portion of contributions above the maximum deduction amount may be carried forward until the total contribution amount has been deducted. Contributions must be made to a Wisconsin 529 plan to qualify.
If your state isn’t listed above, it may have a year-end deadline for 529 plan contributions. Savingforcollege.com’s comparison tool provides a complete list of tax benefits and rules by state.
