Expecting a state tax refund this year? Before you schedule a vacation or plan that shopping spree, consider transforming your tax refund into a contribution toward your Virginia529 account! Experts say an upfront lump sum contribution to a 529 plan savings account may benefit from potential market gains over the long-term.
Virginia taxpayers can direct all or part of a Virginia income tax refund directly into one or more Virginia529 accounts. Use Schedule VAC (pdf), available from the Virginia Department of Taxation to direct a contribution. If you’re contributing to a Prepaid529 or Invest529 account, you will need the account number and beneficiary’s last name. For CollegeAmerica accounts, contact your financial adviser for the required information.
Are you contributing all or part of your federal refund or a refund from another state? You’ll need to first deposit the refund to your bank account, then just send a contribution to Virginia529 using a check or electronic transfer.