States where you can claim a prior-year 529 plan tax deduction

February 21, 2023

State income tax deadlines are approaching, but families saving for college may still have time to reduce their 2021 taxable income. Currently over 30 states, including the District of Columbia offer a state income tax deduction or credit for 529 plan contributions. Most states have a December 31 contribution deadline to qualify for a 529 plan tax deduction, but taxpayers in the states listed below have until April.

Click on the state’s name to find out more about the 529 plans they offer.

Georgia

Deadline: April 18, 2023

GA 529 plan tax deduction:

In 2022, 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 in order to qualify.

Deadline: April 30, 2023

IA 529 plan tax deduction:

In 2021, contributions and rollover contributions up to $3,522 per individual, per beneficiary, are deductible from Iowa state income tax. Eligible contributions must be made by the account owner. Contributions must be made to an Iowa 529 plan in order to qualify.

Deadline: April 18, 2023

MS 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 Mississippi state income tax. Contributions must be made to a Mississippi 529 plan in order to qualify.

Deadline: April 18, 2023

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 in order to qualify

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 plan in order to qualify

Deadline: April 18, 2023

WI 529 plan tax deduction:

In 2021, contributions and the principal portion of rollover contributions of up to $3,560 per beneficiary per year ($1,780 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 amount of contributions 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.