2007 NC Tax Deduction for 529 Plan Contributions
In 2007, qualified North Carolina taxpayers may deduct contributions to North Carolina's 529 College Savings Plan up to $2,500 for individuals and $5,000 for married couples filing jointly. Earnings used for qualified college expenses are income tax free.
To qualify for the deduction, for taxpayers must have adjusted gross income below $60,000 (single), $100,000 (joint), $80,000 (head of household), or $50,000 (married filing separate). You should consult your financial, tax, or other advisor to learn more about how this may apply to your specific circumstances.
For more details, visit the NC College Savings Plan website.
State tax deduction for N.C. 529 college savings plan now available to all N.C. taxpayers
- Money magazine picks N.C. 529 plan as "top choice" -
Raleigh, N.C. (August 2, 2007) - The state tax deduction for North Carolina's 529 college savings plan has been expanded by the N.C. General Assembly and signed into law by Gov. Mike Easley.
For tax year 2007, North Carolina taxpayers making contributions to North Carolina's National College Savings Program can deduct contributions of up to $2,500 for an individual and $5,000 for a married couple filing jointly. The adjusted gross income limits no longer apply.
NC income tax forms may reference contributions made to an account in the Parental Savings Trust Fund of the State Education Assistance Authority, which is the trust fund that holds all the assets of North Carolina's National College Savings Program. Contributors to NC's 529 plan should consult a financial, tax or other advisor to learn more about how this deduction will apply to their particular circumstances.
In addition, the August 2007 edition of Money magazine named North Carolina's 529 plan a "top choice" for North Carolina residents, based on reasonable expenses and a tax break on contributions.
North Carolina's National College Savings Program currently offers 15 investment alternatives. Options range from conservative to aggressive. Individual investment options include the N.C. Treasurer Dependable Income Fund, MetLife Protected Stock Fund, Wachovia/Evergreen Balanced Fund, NCM Capital Aggressive Stock Fund, and seven Vanguard individual investments. There are two age-based investment options, the Seligman CollegeHorizonFunds and three Vanguard Age-based Options
For more information or to enroll, visit www.NC529.org, or call College Foundation of North Carolina (CFNC) for more on the savings program, toll free at 800-600-3453.
The income limitation on the deduction for the 529 contribution was removed in 2007.
Yes - see my 11/20/07 posting.