Today we will address some improvements to 529 college savings plans.
The first change came about as a result of the recently passed tax bill. The new bill expands what the money in a 529 can be used for to include computer equipment and other technology as part of a qualified higher education expense.
The second change applies to College Savings Iowa 529 plans. Effective for tax years beginning on or after January 1, 2015, Iowa taxpayers may now elect to treat contributions to their College Savings Iowa account made up through the deadline for filing an individual Iowa state income tax return. However, this does exclude extensions. Thus a contribution made by April 30, 2016 can be deducted on your 2015 Iowa individual income tax return.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.