RICHMOND, Va., Dec. 28, 2017 /PRNewswire/ -- The deadline for contributions to Virginia529 accounts to qualify for a 2017 state income tax deduction is approaching. Contributions must be made by December 31, 2017 to be deductible for the 2017 tax year. The tax deduction also makes saving for a loved one's future higher education costs extra rewarding for gift givers and recipients.
Individuals, parents and other family members can start or add to Virginia529 accounts to take advantage of the state tax deduction. Virginia tax law allows Virginia taxpayers to deduct contributions up to $4,000 per account per year from their state individual income tax; anything above $4,000 can be carried forward to future tax years.
Account owners age 70 and above (by December 31) may deduct all Virginia529 account contributions made in a year.
Only the account owner qualifies for the deduction, so family members such as grandparents may choose to open their own accounts for tax purposes.
About Virginia529 College Savings Plan:
Virginia529 makes higher education more accessible and affordable for families and individuals. With more than $66 billion in assets under management and 2.6 million accounts as of September 30, 2017, Virginia529 is the largest 529 plan available. Three flexible, affordable, tax-advantaged programs–Prepaid529SM, Invest529SM and CollegeAmerica®–and early commitment scholarship program SOAR Virginia® assist students of any age in reaching their higher education goals. For more information on Virginia529's college savings options, visit Virginia529.com or call 1-888-567-0540 to obtain program materials. These include information on Virginia529 programs, investment objectives, risks, charges, expenses and other important information; read and consider them carefully before investing. All investments are subject to risk, including the possible loss of the money you invest. Virginia529 encourages prospective participants to seek the advice of a professional concerning any financial, tax or legal implications related to opening an account. For residents of states other than Virginia: before investing, you should consider whether your or the beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protections from creditors that are only available for investments in that state's qualified tuition program. ©2017 Virginia College Savings Plan. All Rights Reserved.
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