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State Income Tax Deductions for Section 529 Contributions

In addition to the Federal tax benefits offered to taxpayers for payment of college tuition, many states offer a deduction or credit as well. This section provides a state-by-state overview for claiming or using the deduction or credit available from certain states.
  1. 2009 Section 529 Deductions (2)
  2. American Opportunity FAQ's (6)

The Utah 529 Credit - Tax Benefits for Using the VT 529 Plan
Utah offers a 5% tax credit (not a deduction) to residents who contribute to a Utah 529 plan. This article includes an overview of the credit, its potential value to taxpayers, and instructions for claiming the credit.

The Vermont 529 Credit - Tax Benefits for Using the VT 529 Plan
Vermont offers a 10% tax credit (not a deduction) to residents who contribute to a Vermont 529 plan. This article includes an overview of the credit, its potential value to taxpayers, and instructions for claiming the credit.

The West Virginia 529 Plan Deduction for WV Residents
West Virginia offers an unlimited tax deduction to residents who contribute to a West Virginia 529 plan. This article includes an overview of the WV 529 deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Wisconsin 529 Plan Deduction for WI Residents
Wisconsin offers a $3,000 tax deduction to residents who contribute to a Wisconsin 529 plan on behalf of a child, grandchild, niece, or nephew. This article includes an overview of the WI 529 deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Virginia 529 Plan Deduction for VA Residents
Virginia offers a $4,000 tax deduction ($2,000 for 2008) to residents who contribute to a Virginia 529 plan. This article includes an overview of the VA 529 deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The South Carolina 529 Plan Deduction for SC Residents
South Carolina offers an "unlimited" deduction to residents who contribute to a South Carolina 529 plan. This article includes an overview of the SC 529 deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Rhode Island 529 Plan Deduction for RI Residents
Rhode Island offers a "per contributor" deduction to residents who contribute to a Rhode Island 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The PA 529 Plan Deduction for Pennsylvania Residents
Pennsylvania offers a "per beneficiary" deduction to residents who contribute to the PA 529 Plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Oregon 529 Plan Deduction for OR Residents
Oregon offers a "per contributor" deduction to residents who contribute to the Oregon 529 Plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Oklahoma 529 Plan Deduction for OK Residents
Oklahoma offers a "per contributor" deduction to residents who contribute to the Oklahoma Plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Ohio College Savings Plan Deduction for OH Residents
Ohio offers a "per beneficiary" deduction to residents who contribute to an Ohio 529 Plan. This article includes a summary of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The North Carolina 529 Plan Deduction for NC Residents
North Carolina offers a "per contributor" deduction to residents who contribute to a North Carolina 529 plan. This article includes a summary of the deduction, its potential value to taxpayers, and steps for claiming the deduction.

The New Mexico College Savings Plan Deduction for NM Residents
New Mexico offers an "unlimited" deduction to residents who contribute to a New Mexico 529 plan. This article includes a summary of the deduction, its potential value to taxpayers, and steps for claiming the deduction.

The Nebraska College Savings Plan Deduction for NE Residents
Nebraska offers a "per tax return" deduction to residents who contribute to the Nebraska College Savings Plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Montana 529 Plan Deduction for MT Residents
Montana offers a "per taxpayer" deduction to residents who contribute to a Montana 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Missouri College Savings Plan Deduction for MO Residents
Missouri offers a "per tax return" deduction to residents who contribute to a Missouri 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Mississippi College Savings Plan Deduction for MS Residents
Mississippi offers a "per tax return" deduction to residents who contribute to a Mississippi college savings plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Michigan 529 Plan Deduction for MI Residents
Michigan offers a "per tax return" deduction to residents who contribute to a Michigan 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Maryland 529 Plan Deduction for MD Residents
Maryland offers a "per beneficiary" tax deduction to residents who contribute to a Maryland 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Maine 529 Tax Deduction for ME Residents
Maine offers a "per beneficiary" tax deduction to residents who contribute to any state's Section 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Louisiana START 529 Tax Deduction for LA Residents
Louisiana offers a "per beneficiary" tax deduction to residents who contribute to its in-state START 529 Plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Iowa 529 Credit - Tax Benefits for Using the IA 529 Plan
Iowa offers a "per beneficiary" tax deduction to residents who contribute to its in-state Iowa 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

The Indiana 529 Credit - Tax Benefits for Using the IN 529 Plan
Indiana offers a 20% tax credit (not a deduction) to residents who contribute to its in-state Indiana 529 plan. This article includes an overview of the credit, its potential value to taxpayers, and instructions for claiming the deduction.

The Alabama 529 Deduction - Tax Benefits for Using the AL 529 Plan
Alabama offers a $5,000 state income tax deduction to residents who contribute to its in-state Alabama 529 plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

Illinois Tax Deduction for Section 529 Contributions
Provides overview and rules to receive an Illinois tax deduction for Section 529 college account contributions.

College Tax Benefits for Arizona Residents
Arizona is one of the few states that allows its residents to deduct contribution to any state's Section 529 plan, not just the Arizona Family College Savings Program. This article contains an overview of the rules for claiming this deduction.

College Tax Benefits for Arizona Residents
Arizona is one of the few states that allows its residents to deduct contribution to any state's Section 529 plan, not just the Arizona Family College Savings Program. This article contains an overview of the rules for claiming this deduction.

Educational Tax Benefits for Arkansas Residents
Arkansas offers a substantial state income deduction for helping to fund your child's college education. The deduction requires you to contribute to the Arkansas Section 529 Plan (GIFT). This article provides an overview of the rules for claiming the deduction, as well as links to the necessary state documents.

College Tax Benefits for Colorado Residents
The State of Colorado offers its residents an "unlimited" deduction for contributing money to one of the state's Section 529 plan options. Combined with the Colorado Matching Grant program, this makes for an extremely attractive savings option for parents in Colorado. This article reviews the rules and guidelines for claiming this deduction.

Connecticut: Tax Deductions for Education Expenses
Connecticut offers its residents a substantial deduction for contributing money to the Connecticut CHET savings program. This article reviews the rules and guidelines for claiming this deduction.

District of Columbia Tax Deduction for Section 529 Contributions
The District of Columbia offers a substantial tax deduction to its residents for contributing to the D.C. College Savings Plan. This article contains an overview of the deduction, rules for claiming, and sources of more information.

Georgia Tax Deduction for Section 529 Contributions
The state of Gerogia offers a substantial tax deduction to its residents for contributing to the Georgia Higher Education Savings Plan. This article contains an overview of the deduction, rules for claiming, and sources of more information.

Idaho Income Tax Deduction for Section 529 Contributions
The state of Idaho offers up to $8,000 in tax deductions to its residents for contributing to the Idaho IDeal 529 Savings Plan. This article contains an overview of the deduction, rules for claiming, and sources of more information.

The Kansas 529 Tax Deduction - Tax Benefits for Using the KS 529 Plan
Kansas offers a "per beneficiary" tax deduction to residents who contribute to its in-state Kansas 529 Learning Quest Plan. This article includes an overview of the deduction, its potential value to taxpayers, and instructions for claiming the deduction.

New York Tax Deduction for Section 529 Contributions
The state of New York offers a substantial tax deduction to its residents for contributing to the New York State Direct Plan. This article contains an overview of the deduction, rules for claiming, and sources of more information.

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