While you may be focused on the holidays, don’t let the season go by and leave money on the table! Finalize contributions to your 529 accounts before ringing in 2024.
For Virginia taxpayers, maximizing contributions also means maximizing tax benefits. Virginia residents can deduct contributions up to $4,000 per account, per year, on their Virginia individual income tax returns. Also, Virginians aged 70 and above may deduct the entire amount contributed to a Virginia529 account in one year. Learn more about the tax benefits of a Virginia529 account.
State income tax benefits depend on where you live and how much you contribute to a 529 plan during a given tax year. While most states limit state tax deductions to contributions made to their own state’s 529 plan, nine states (Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio, Pennsylvania) allow taxpayers to deduct contributions to any 529 account for qualified college expenses. If you pay income taxes to one of these states, consult a tax professional for more information about deducting contributions to a Virginia529 account.
Check out Virginia529’s holiday schedule for processing deadlines. That way you’ll ensure your contributions are made in time to qualify for a 2023 tax deduction. This calendar is also useful if you’re planning a withdrawal or investment option change this month. Remember, online contributions and withdrawals are subject to bank validation. If you add a new bank or additional information is required, processing times may be delayed.