What is an Elder Law attorney? Maryland college investment plan tax deduction friend wanted you to see this item from WRAL.
North Carolinians looking for a tax deduction for saving for their children’s college education have until Tuesday to make a deposit in NC529 Plan. Under the overhaul of the tax system state lawmakers approved in July, the deduction for payments into the college-savings program will be eliminated as of Jan. Nearly 70,000 taxpayers participate in the NC529 Plan, which, like 529 plans offered elsewhere, provides tax-free earnings on investments in an account as long as the money is used to pay for college expenses. Susan Moore, whose son, Alex, is a junior at Word of God Academy in Raleigh, said she’s disappointed by the loss of the state tax deduction. We’ve been saving for college for a long time for Alex,” Moore said.
5,000 for a joint return amounted to only a few hundred dollars in tax savings a year, but financial adviser Gerald Townsend said it made a difference for many taxpayers. This was a carrot to invest in a North Carolina plan,” Townsend said. Many states offer tax deductions for their own 529 plans, and the market is very competitive. Townsend said North Carolina’s plan might not fare so well without the deduction because its returns aren’t among the best. The larger the plan is, the more leverage it has to offer consumers a better value, he said. Big 529 programs like those in Alaska and Utah are rated among the best by investment firms.