Most times, this benefit is reserved for residents who save money in their home state’s plan. Currently Arizona, Kansas, Maine, and Pennsylvania offer deductions for putting money into another state’s plan.
The current 529 plan deduction amounts (click on individual states for more info) are as follows:
Alabama - $5,000 per contributor
Arkansas - $5,000 per contributor
Arizona - $750 per contributor
Colorado - Full amount of contribution
Connecticut - $5,000 per contributor
Wash. D.C. - $4,000 per contributor
Georgia - $2,000 per child
Idaho - $4,000 per contributor
Illinois - $10,000 per contributor
Indiana - 20% tax credit up to $1,000
Iowa - $2,685 per beneficiary
Kansas - $3,000 per contributor, per child
Louisiana - $2,400 per contributor
Maine - $250 per child
Maryland - $2,500 per beneficiary
Michigan - $5,000 per contributor
Mississippi - $10,000 per contributor
Missouri - $8,000 per contributor
Montana - $3,000 per contributor
Nebraska - $5,000 per tax return
New Mexico - Full amount of contribution
New York - $5,000 per contributor
N. Carolina - $2,500 per contributor
Ohio - $2,000 per child, per donor
Oklahoma - $10,000 per contributor
Oregon - $2,000 per contributor
Pennsylvania - $13,000 per child, per contributor
Rhode Island - $500 per contributor
S. Carolina - Full amount of contribution
Utah - 5% tax credit on max of $1,740 tuition per beneficiary
Vermont - 10% credit ($250 max.) per child, per contributor
Virginia - $4,000 per account, per year (unlimited over age 70)
W. Virginia - Full amount of contribution
Wisconsin - $3,000 per dependent, grandchild, or self
Notes:
-“Per contributor” implies that a couple filing jointly would get twice the amount listed.
- AL, FL, NV, SD, TX, WA, and WY have no state income tax and thus offer no deductions.
