Want to save on your 2021 taxes and help your child financially prepare for college? Georgia’s official college savings plan, the Path2College 529 Plan, offers Georgia families an exclusive way to still save on their 2021 state income taxes.
Contributions to a Path2College 529 savings account by April 18, 2022, are eligible for up to an $8,000 state income deduction on a 2021 Georgia income tax return – the only 529 plan to offer a Georgia state income tax deduction. So, for Georgia families looking for last minute tax savings to help with their 2021 filings, it’s not too late to make a college savings contribution AND utilize the tax benefits that go with it.
“Tax time is traditionally when families review their financial health, adjust their spending and saving habits, and create a plan for their future,” said Georgia Student Finance Commission President Lynne Riley. “It is an ideal time to open or add to a college savings plan for a future scholar, and benefit from the tax advantages of saving. It’s a win-win.”
Families can save in the Path2College 529 Plan with as little as $25. Contributions to the plan are deductible for Georgia income tax purposes up to $8,000 per year, per beneficiary, for those filing a joint return and up to $4,000 per year, per beneficiary, for those filing a single return. Any earnings on those contributions in the Path2College 529 Plan are federal and Georgia income tax deferred.
Additionally, when it’s time to use your savings, withdrawals for qualified higher education expenses such as tuition, books, supplies and many other items are federal and Georgia income tax-free. Savings within the Path2College 529 Plan may be used at schools in the United States and abroad for eligible education-related expenses.
There are free financial planning tools to help families available at www.Path2College529.com. Tools include a college savings calculator, savings option comparisons, research and information about college savings and much more.