Give the gift of education and reduce your taxes
RICHMOND, Virginia – December 5, 2016 – Tuition is typically the most expensive component of higher education. For 2016-2017, tuition and mandatory fees at a Virginia public university can cost as much as $21,234. Families can eliminate the uncertainty of future increases at those institutions by enrolling a child in Virginia529 prePAID (prePAID), available for a limited time through March 31, 2017.
The start of the enrollment period is timed to coincide with the holiday season and the impending deadline for a 2016 Virginia individual income tax deduction. The deadline to open and contribute to a new Virginia529 account or contribute to your existing account for a 2016 tax deduction is December 31, 2016.
In studies, many parents say they welcome help saving for a child’s education but are hesitant to ask. Grandparents, aunts and uncles can chip in to give the gift of education – and share the cost – by starting or contributing to a Virginia529 account, including prePAID. Gifts to a Virginia529 account benefit the account owner as well as the beneficiary, in the form of the Virginia income tax deduction enjoyed by account owners.
A prePAID calculator available at Virginia529.com illustrates the full array of price and payment options for a 2016-2017 contract. Families can try out various scenarios before deciding what works best for their goals and budget. The first payment is not due until May 1, 2017; however, payments made in 2016 will qualify for the 2016 tax deduction.
Visit Virginia529.com to enroll, learn more about the tax deduction and review the prePAID Program Description & Master Agreement.