Boscola Details Tax Benefits of Contributing to College Savings Plan by Year’s End

Bethlehem, Dec. 13, 2013 – State Sen. Lisa Boscola today said those who contribute to a 529 College Savings Program by Dec. 31 can reduce their 2013 state taxable income.

“Giving a 529 plan contribution for a child’s education makes for a great holiday gift,” Boscola said. “And, if you make the contribution in 2013, you can take advantage of the tax benefit on your 2013 personal income tax.”

She said taxpayers can deduct up to $14,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on their state tax returns for 2013. Married couples filing jointly can deduct up to $28,000 per beneficiary if each spouse has taxable income of at least the amount deducted.

“Apart from reducing your taxable income, earnings from the plan are not subject to yearly taxes as they grow,” Boscola said. “Finally, when your contributions are withdrawn for qualified higher education expenses, the earnings are tax-exempt.

“These college savings plans are a good way to save for college and I urge families to look into them.

Boscola said the PA 529 College Savings Program is offering free enrollment – a $50 savings – for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened by Dec. 31 at www.PA529.com. Use code TAX2013 when prompted. To open or contribute to an account, you can visit www.PA529.com, call 1-800-440-4000 or contact Boscola’s district office at 610-868-8667.

 

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