Iowa State Treasurer, Michael Fitzgerald, has announced an increase in the state tax deduction amount for College Savings Iowa 529 plans for 2021. “Iowa taxpayers who are College Savings Iowa account owners can now deduct the first $3,474 they contribute per beneficiary account from their state taxable income in 2021,” he says. “This could mean a deduction of up to $13,896 for a family of four when both parents have accounts for each of their children. It’s an ideal scenario for those who want to keep more money in their pocket while saving for future education.” College Savings Iowa is a 529 program that lets parents, grandparents, friends and relatives invest for education expenses on behalf of a future scholar. The money can be used to pay for qualified expenses, such as tuition, room, board, books, supplies and more at any accredited program across the country. The educational institution does not have to be in Iowa and includes colleges, universities, community colleges, trade schools, apprenticeship programs and more. Accounts can be opened in as little as 10 minutes at CollegeSavingsIowa.com.
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