Harrisburg, Dec. 13, 2013 – State Sen. Jim Brewster (D-Allegheny/Westmoreland) urged Pennsylvanians to open or contribute to a 529 College Savings Program account on the behalf of a child in their lives. He said contributions made by Dec. 31 will reduce a person’s 2013 Pennsylvania state taxable income.
“This is a simple way to save money for a child’s college education while taking advantage of tax benefits on your 2013 state taxes,” Brewster said. “Consider giving a 529 plan contribution as a holiday gift before Dec. 31.”
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.
“In addition to reducing your taxable income, earnings in a 529 plan are not subject to yearly taxes as they grow, and when used for qualified higher education expenses, earnings are tax-exempt when withdrawn,” said Brewster. “Hopefully these tax benefits encourage families to plan ahead for their children’s futures.”
Brewster also 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, visit www.PA529.com or call 1-800-440-4000.
-30-