As the year-end tax deadline approaches, Wisconsin families can save on taxes while saving for college — if they act now
Each year, Wisconsin’s College Saving Plan, Edvest, offers a state tax deduction to Wisconsin account holders of up to $3,000 per beneficiary. If you want to claim yours, there’s only one catch – you must contribute before December 31 to take advantage to reduce your 2013 Wisconsin state taxable income.
“Investing in education is a smart move,” says James DiUlio, Director, Wisconsin 529 College Savings Program. “But as the calendar days tick down to the end of 2013, we want to remind Wisconsin families that the tax benefits built into Edvest make it an even smarter move.”
Edvest account holders can reduce their Wisconsin taxable income up to $3,000 per beneficiary per year if the beneficiary is your child, grandchild, great-grandchild, niece, nephew or yourself. The cut-off to take advantage for 2013 is the year-end tax deadline of December 31.
In addition to the annual Wisconsin state tax deduction, an Edvest College Saving Plan has several other tax advantages. Did you know that an account holder’s money can grow tax free? What that means is earnings used to pay for qualified higher education expenses will be free from federal and Wisconsin state income tax upon withdrawal for higher education expenses such as tuition, books, and room and board. But to claim the state income tax benefit for 2013, you have to act now.
“Do it today,” says DiUlio. “It’s one of the most important things you can check off your list before the end of the year.”
To take advantage, Wisconsin residents with an Edvest account can access their account online at https://www.edvest.com/e-access/index.shtml or make a contribution by mail. If you don’t already have an Edvest account, you can open one for just $25 either online at https://www.edvest.com/open/index.shtml or by mail.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor. Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax.