This Inside Indiana Business article explains the 529 plan that is available for Indiana only. The credit is up to $1,000 dollars in 2022 and increases up to $1,500 in 2023.
Source: Inside Indiana Business | Repost RE Donica & Associates 2/2/2023 –
Indiana’s CollegeChoice 529 plan is a fantastic way to save for college expenses due to its low cost and strong investment options as well as the income tax credit received by contributors. Read on to discover frequently asked questions and answers regarding 529 plans.
As a quick refresher, a 529 plan is an investment account mainly for post-secondary education expenses. Money contributed is not deductible, but all earnings accumulate tax-deferred and are distributed tax-free if used for qualified education expenses.
What is the Tax Incentive for Contributing?
Indiana is one of the few states that offers taxpayers a tax credit for contributions to a CollegeChoice 529 plan. Currently, the credit is equal to 20% of the amount contributed during the year, up to a maximum of $1,000 for single taxpayers and those married filing jointly. However, beginning on January 1, 2023, the credit is equal to 20% of the amount contributed but increases to a maximum credit of $1,500!