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

Kathryn FlynnBy Kathryn FlynnBy Savingforcollege.com

State income tax deadlines are approaching, but families saving for college may still have time to reduce their 2019 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 15, 2020

529 plan tax deduction:

In 2019, contributions up to $2,000 ($4,000 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. The amount of deductible contributions increases to $4,000 ($8,000 for a joint return) in 2020.

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Iowa

Deadline: April 30, 2020

529 plan tax deduction:

In 2019, contributions and rollover contributions up to $3,387 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. The amount of deductible contributions increases to $3,439 in 2020.

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Mississippi

Deadline: April 15, 2020

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.

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Find your 529 plan - Select your state below

Did you know that residents are not limited to investing in their own state's plan? Another state may offer a plan that performs better and has lower fees. Select your state below to see your state's plan and other options.

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Find a 529 Plan. Select your state below.

Did you know that residents are not limited to investing in their own state’s plan? Another state may offer a plan that performs better and has lower fees. Select your state below to see your state’s plan and other options.


Oklahoma

Deadline: April 15, 2020

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

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South Carolina

Deadline: April 15, 2020

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

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Wisconsin

Deadline: April 15, 2020

529 plan tax deduction:

In 2019, contributions and the principal portion of rollover contributions of up to $3,280 per beneficiary per year ($1,640 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. The amount of deductible contributions increases to $3,340 ($1,670 if married filing separately or divorced) in 2020.

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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.


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