529 plan contribution deadlines for state tax benefits

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As we head into the final weeks of 2017, you may be looking for ways to reduce your taxable income. If you’re currently saving for college, you may qualify for a state tax credit or deduction for contributions to a 529 plan. Over 30 states, including the District of Columbia, currently offer this type of perk, and the rules vary by state. The list below includes details about the tax benefits offered, the contribution deadline and the maximum 529 plan balance each state allows. Click on the state’s name to see the plans it offers. Remember, you don’t have to use your home state’s plan and you can use a 529 college savings plan to pay for an eligible institution in any state.

Keep in mind, however, that December 31, 2017 is a Sunday. Your plan may accept electronic contributions on this day, but you may want to confirm the deadline if you're mailing in a paper check.

RELATED: How much is your state’s tax benefit really worth??ref=related

1. Alabama

State tax benefit: Contributions and rollover contributions up to $5,000 for a single return and up to $10,000 for a joint return are deductible in computing Alabama taxable income.

Deadline: December 31, 2017.

Maximum aggregate plan balance: $400,000

2. Arizona

State tax benefit: Contributions to in-state and out-of-state 529 plans of up to $2,000 for a single return and up to $4,000 for a joint return are deductible in computing Arizona taxable income..

Deadline: December 31, 2017.

Maximum aggregate plan balance: $431,000

3. Arkansas

State tax benefit: Contributions up to $5,000 for a single return and up to $10,000 for a joint return are deductible in computing Arkansas taxable income, with a four-year carryforward of excess contributions. Contributions to a NON-Arkansas plan of up to $3,000 per year by an individual, and up to $6,000 per year by a married couple filing jointly, are deductible. Rollover contributions from another state's plan are deductible in the amount of $7,500 per individual and $15,000 per couple. .

Deadline: December 31, 2017

Maximum aggregate balance: $366,000

4. Colorado

State tax benefit: Contributions to a Colorado 529 plan by anyone are deductible in computing Colorado taxable income. Rollover contributions are not eligible.

Deadline: December 30, 2017

Maximum aggregate balance: $400,000

5. Connecticut

State tax benefit: Contributions and rollover contributions up to $5,000 for a single return and up to $10,000 for a joint return are deductible in computing Connnecticut taxable income, including a five-year carryforward for excess contributions. Rollover contributions are not eligible.

Deadline: December 30, 2017

Maximum aggregate plan balance: $300,000

6. District of Columbia

State tax benefit: Contributions and rollover contributions up to $4,000 for a single return and up to $8,000 for a joint taxpayers who each make a contribution to their own account, with a five-year carryfoward for excess contributions, are deductible in computing DC taxable income. Deductible contributions must be made by the account owner and rollover contributions are not eligible.

Deadline: December 31, 2017

Maximum aggregate plan balance: $500,000

7. Georgia

State tax benefit: Contributions of up to $2,000 per beneficiary per year for those filing a single return and $4,000 per year per beneficiary for those filing a joint return are deductible in computing Georgia taxable income. Incoming rollovers from other 529 plans do not qualify as contributions eligible for the state income tax deduction.

Deadline: April 15, 2018

Maximum aggregate plan balance: $235,000

8. Idaho

State tax benefit: Contributions and rollover contributions up to $6,000 for a single return and up to $12,000 for a joint return are deductible n computing Idaho taxable income.

Deadline: December 31, 2017

Maximum aggregate plan balance: $350,000

9. Illinois

State tax benefit: Contributions and rollover contributions up to $10,000 for a single return and up to $20,000 for a joint return are deductible from Illinois state income tax. Only the principal portion of rollover contributions is eligible.

Deadline: December 31, 2017

Maximum aggregate plan balance: $400,000

10. Indiana

State tax benefit: Indiana taxpayers can claim a 20% tax credit for contributions to an Indiana CollegeChoice 529 plan (maximum $1,000 per year) against state income tax. Rollover contributions and contributions generated from a rewards program are not eligible.

Deadline: December 31, 2017

Maximum aggregate plan balance: $450,000

RELATED: How much can you contribute to a 529 plan in 2017?

11. Iowa

State tax benefit: Contributions and rollover contributions up to $3,239 for a single return and up to $6,478 for a joint return, each making their own contributions, are deductible in computing Iowa taxable income. Eligible contributions must be made by the account owner.

Deadline: April 30, 2018

Maximum aggregate plan balance: $420,000

12. Kansas

State tax benefit: Contributions to in-state and out-of-state 529 plans to $3,000 for a single return and up to $6,000 for a joint return are deductible from Kansas state income tax. Rollover contributions are not eligible.

Deadline: December 31, 2017

Maximum aggregate plan balance: $380,000

13. Louisiana

State tax benefit: Contributions up to $2,400 for a single return and up to $4,800 for a joint return are deductible from Louisiana state income tax. If the account owner does not take the maximum yearly deduction, the unused amount can be carried over to the next year to increase the cap. Double deductions of up to $4,800 per year may be claimed for an account opened for an eligible needy, non-related beneficiary.

Deadline: December 31, 2016

Maximum aggregate plan balance: $500,000

14. Maryland

State tax benefit: Contributions and rollover contributions up to $2,500 for a single return and up to $5,000 for married couples who each make a contribution to an account are deductible from Maryland state income tax, with a 10-year carryforward of excess contributions.

Deadline: December 31, 2017

Maximum aggregate plan balance: $350,000

15. Massachusetts

State tax benefit: Contributions up to $1,000 for a single return and up to $2,000 for a joint return are deductible in computing Massachusetts taxable income.

Deadline: December 31, 2017

Maximum aggregate plan balance: $375,000

16. Michigan

State tax benefit: Contributions up to $5,000 for a single return and up to $10,000 for a joint return, minus any qualified withdrawals taken in that year, are deductible in computing Michigan taxable income. Rollover contributions are not eligible.

Deadline: December 31, 2017

Maximum aggregate plan balance: $500,000

17. Minnesota

State tax benefit: Minnesota tax payers are eligible for a tax credit or a tax deduction for 529 plan contributions, depending on their income. Contributions to any state's 529 plan of up to $1,500 per year by an individual, and up to $3,000 for a joint return are deductible in computing Minnesota taxable income. Residents with adjusted gross incomes of $75,000 or less are eligible to claim a tax credit equal to up to 50% of contributions, reduced by any withdrawals, with a maximum $500 credit.

Deadline: December 31, 2017

Maximum aggregate plan balance: $425,000

18. Mississippi

State tax benefit: Contributions and rollover contributions up to $10,000 for a single return and up to $20,000 for a joint return are deductible in computing Mississippi taxable income.

Deadline: April 15, 2018

Maximum aggregate plan balance: $235,000

19. Missouri

State tax benefit: Contributions to in-state and out-of-state 529 plans of up to $8,000 for a single return and up to $16,000 for a joint return are deductible in computing Missouri taxable income. Eligible contributions must be made by the account owner or a spouse. Rollover contributions are not eligible.

Deadline: December 31, 2017

Maximum aggregate plan balance: $325,000

20. Montana

State tax benefit: Contributions to in-state and out-of-state 529 plans of up to $3,000 for a single return and up to $6,000 for a joint return are deductible in computing Montana taxable income. Eligible contributions must be made by the account owner, their spouse or their custodian/parent.

Deadline: December 31, 2017

Maximum aggregate plan balance: $396,000

RELATED: 5 year-end tax tips for college savers

21. Nebraska

State tax benefit: Contributions and rollover contributions up to $5,000 for a single return and up to $10,000 for a joint return are deductible in computing Nebraska taxable income. Eligible contributions must be made by the account owner, or parents or guardians of UTMA/UGMA accounts.

Deadline: December 31, 2017

Maximum aggregate plan balance: $400,000

22. New Mexico

State tax benefit: Contributions are fully deductible in computing New Mexico taxable income.

Deadline: December 31, 2017

Maximum aggregate plan balance: $500,000

23. New York

State tax benefit: Contributions and rollover contributions up to $5,000 for a single return and up to $10,000 for a joint return are deductible in computing New York taxable income. Eligible contributions must be made by the account owner or their spouse.

Deadline: December 31, 2017

Maximum aggregate plan balance: $520,000

24. North Dakota

State tax benefit: Contributions up to $5,000 for a single return and up to $10,000 for a joint return are deductible in computing North Dakota taxable income.

Deadline: December 31, 2017

Maximum aggregate plan balance: $269,000

25. Ohio

State tax benefit: Contributions and rollover contributions up to $2,000 per beneficiary per year are deductible in computing Ohio taxable income, with an unlimited amount of carryforward of contributions above $2,000.

Deadline: December 29, 2017

Maximum aggregate plan balance: $445,000

26. Oklahoma

State tax benefit: Contributions and rollover contributions up to $10,000 for a single return and up to $20,000 for a joint return are deductible in computing Oklahoma taxable income, with a five-year carryforward of excess contributions.

Deadline: April 15, 2018

Maximum aggregate plan balance: $300,000

27. Oregon

State tax benefit: Contributions and rollover contributions up to $2,330 for a single return and up to $4,660 for a joint return are deductible in computing Oregon taxable income.

Deadline: April 16, 2018

Maximum aggregate plan balance: $310,000

28. Pennsylvania

State tax benefit: Contributions to in-state and out-of-state 529 plans up to the gift-tax exclusion amount ($14,000 and $28,000 in 2017) are deductible in computing Pennsylvania taxable income.

Deadline: December 31, 2017

Maximum aggregate plan balance: $511,758

29. Rhode Island

State tax benefit: Contributions $500 for a single return and up to $1,000 for a joint return are deductible in computing Rhode Island taxable income, with an unlimited carryforward of contributions above these amounts. Rollover contributions are not eligible.

Deadline: December 31, 2017

Maximum aggregate plan balance: $395,000

30. South Carolina

State tax benefit: Contributions and rollover contributions are fully deductible in computing South Carolina taxable income.

Deadline: April 15, 2017

Maximum aggregate plan balance: $426,000

RELATED: 5 year-end tax tips for college savers

31. Utah

State tax benefit: Contributions and rollover contributions up to $1,920 for a single return and up to $3,840 for a joint return are eligible for a 5% credit against Utah state income tax. In 2017, there is a maximum credit of $96 per beneficiary for single tax filers ($192 for joint filers). Eligible contributions must be made before the beneficiary turns 19. Account owner can receive a tax credit from contributions made by a non-owner.

Deadline: December 29, 2016 or December 31, 2016 for electronic contributions

Maximum aggregate plan balance: $430,000

32. Vermont

State tax benefit: Contributions up to $2,500 for a single return and up to $5,000 for married couples who each make their own contributions are eligible for a 10% tax credit against Vermont state income tax. Eligible contributions must be made by the account owner or their joint tax filer. The principal portion of rollover contributions is eligible, provided the funds remain in the account through the entire tax year.

Deadline: December 31, 2017

Maximum aggregate plan balance: $352,800

33. Virginia

State tax benefit: Contributions up to $4,000 per account per year are deductible in computing Virginia taxable income, with an unlimited carryforward of excess contributions. For taxpayers at least 70 years of age, contributions are fully deductable. Only the account owner can deduct contributions from a non-owner.

Deadline: December 29, 2017, or December 31, 2017 for electronic contributions

Maximum aggregate plan balance: $500,000

34. West Virginia

State tax benefit: Contributions are fully deductible in computing West Virginia taxable income.

Deadline: December 31, 2017

Maximum aggregate plan balance: $265,620

35. Wisconsin

State tax benefit: Contributions and the principal portion of rollover contributions to in-state or out-of-state 529 plans up to $3,140 per beneficiary per year ($1,570 for those married filing separately or divorced), are deductible in computing Wisconsin taxable income. The principal portion of contributions above $3,140 may be carried forward until the total amount of contributions has been deducted.

Deadline: April 15, 2018

Maximum aggregate plan balance: $456,000

RELATED: 5 simple steps to enrolling in a 529 plan

Originally Posted: 2015-12-09