CFNC: A gift toward college savings can save on taxes too

-- NC 529 Plan recommends making contributions for 2012 tax year early

RALEIGH, N.C., Nov. 5, 2012 /PRNewswire-USNewswire/ -- A gift contribution to a college savings fund is a great idea any time of the year – and especially during the holiday season.

A contribution is an especially good idea for any North Carolina taxpayer interested in helping a prospective student by contributing to his or her NC 529 college savings plan.  Even if the contributor is not the account owner, the NC taxpayer may be eligible for a state tax benefit on the contribution.  NC 529 contributions of up to $2,500 for an individual and $5,000 for a married couple filing jointly can be deducted annually from NC taxpayers' state taxable income. 

North Carolina parents, grandparents and others are encouraged to beat the end-of-year contribution rush.  Due to the heavy volume of 529 contributions often received in December, combined with increased holiday mail, contributing early is prudent. 

To be considered as a contribution for 2012, contributions must be received by the time specified on the year-end deadlines chart posted at CFNC.org/NC529.  The date a mailed contribution is postmarked does not determine whether it meets the year-end deadline.  Deadlines for processing will differ based on the method used to contribute, such as by paper check, wire or electronic draft.  Waiting until the last minute may cause a problem if there are questions concerning your contribution or enrollment form or if there are mail delays. 

Since your holiday gift can benefit both you and the recipient, don't miss your chance this year.  If you have any questions about the NC 529 Plan, call toll-free 1-800-600-3453.

SOURCE College Foundation of North Carolina