I have capital gains from a property I sold. Will contributing to a 529 plan reduce my tax liability? According to your video only state taxes correct, no federal tax benefits?
Great Question! My research suggests that what matters is that you are the Illinois Taxpayer making the contribution and that the beneficiary state doesn't matter, however I do like the caution from Brightsart/Illinois 529: "Illinois tax treatment in connection with the Plan applies only to Illinois taxpayers. You should consult with a qualified advisor regarding the application of Illinois tax provisions to your particular circumstances." Check out page 57 and run it by your tax preparer first. brightstart.com/documents/IL_plan_description.pdf
Didn't realize how flexible a 529 plan was when it comes to actually using the funds. Great video!
Yes, it is!
I have capital gains from a property I sold. Will contributing to a 529 plan reduce my tax liability? According to your video only state taxes correct, no federal tax benefits?
529 contributions don’t subtract from Federal income.
I'm in Illinois but granddaughter is in Iowa. If I'm contributing, can I deduct from my Illinois return if I'm the person setting this up?
Great Question! My research suggests that what matters is that you are the Illinois Taxpayer making the contribution and that the beneficiary state doesn't matter, however I do like the caution from Brightsart/Illinois 529: "Illinois tax treatment in connection with the Plan applies only to Illinois taxpayers. You should consult with a qualified advisor regarding the application of Illinois tax provisions to your particular circumstances."
Check out page 57 and run it by your tax preparer first. brightstart.com/documents/IL_plan_description.pdf