The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Captain FIRE on September 27, 2017, 12:07:02 PM
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My state offers a state tax deduction, up to $1000. Can my husband and I set up one plan to get the deduction for our kid (putting in $2k) or do we need to set up two separate 529s with $1k each?
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My state offers a state tax deduction, up to $1000. Can my husband and I set up one plan to get the deduction for our kid (putting in $2k) or do we need to set up two separate 529s with $1k each?
It depends on your state and its rules. My state lets you deduct $2K/beneficiary/year with unlimited carryover regardless of filing status. So even if wife and I opened two 529s for one of our kids, we could only deduct $2K total, not $4K.
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In GA, the deduction is per kid and based on your filing status. Check your state rules.
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It allows deducting $2k per married couple filing jointly - I just didn't know whether that meant we could have only one plan rather than two.
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It allows deducting $2k per married couple filing jointly - I just didn't know whether that meant we could have only one plan rather than two.
If they say $2k per mfj, then you can put that amount in one plan. There's no need for two plans for the same kid.
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Great, thanks!