Subtraction For Contributions to 529 Plans

Effective for tax years beginning after 2016, the legislation allows personal income taxpayers to subtract up to $1,500 ($3,000 for married joint filer) of contributions to any state’s Sec. 529 college savings plan or prepaid tuition plan. The subtraction excludes amounts that are rolled-over from other college savings plans and is limited to taxpayers who do not claim the new Sec. 529 savings credit plan.