Have a 529 plan? These recent changes may apply to you.
Article from CollegeChoice
Indiana taxpayers may receive a state income tax credit equal to 20% of their contributions to a CollegeChoice 529 account, up to $1,000 per year ($500 for married filing separately) through December 31, 2022. Contributions by Indiana taxpayers made on or after January 1, 2023, will qualify for the 20% tax credit, with a new maximum of up to $1,500 ($750 for married filing separately).
Indiana Department of Revenue Information Bulletin #98 provides an overview of the tax credit with respect to CollegeChoice 529, detailing who qualifies, the amounts, eligible contributions, and other important information to consider. The Bulletin will be updated to reflect the increased maximum tax credit after it goes into effect during the 2023 tax year. There are no changes in the tax credit for contributions made in 2022.
Click here for more information on these changes.
Also, please note if you’d like to contribute this year to an existing account, we’ll need your contribution information by 12/12/22 in order to meet the end of the year deadline. If you have any questions about these changes or contributions, please contact us. (Click here for contact information.)
Blog by Kim Storen, EA – Business Tax Manager
Learn more about Kim and the rest of the Storen Financial team here.