Making a College Savings Contribution Today May Reduce 2021 Taxes

News provided by

Mar 15, 2022, 19:59 ET

, March 15, 2022 /PRNewswire/ -- 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.

To learn more about the Path2College 529 Plan, its investment objectives, tax benefits, risks, and costs please see the Plan Description at path2college529.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors only available for investing in its own 529 plan. Consult your legal or tax professional for tax advice.If the funds aren't used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. TIAA-CREF Tuition Financing, Inc. (TFI), Plan Manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Path2College 529 Plan.

SOURCE Path2College