TAX TIP OF THE DAY... deduct 529 college plan contributions
PA allows each taxpayer to deduct 529 college plan contributions up to $14k per student each year. If you want to contribute even more... double it by having each parent contribute $14k toward the child's 529 account. The deduction is not limited to your own children. You can deduct contributions to the 529 accounts of grandchildren, nieces & nephews, neighbors, friends, etc.
OTHER STATE'S 529 PLANS:
The deduction is not limited to the PA TAP program. You can use contributions to any other state's 529 plan as well.
GRANDPARENTS MAY NOT BE IDEAL CONTRIBUTORS:
Keep in mind that a retired 529 contributor may not have any PA tax liability and therefore would gain no PA tax benefit from a 529 contribution. So it may be better for a grandparent to gift the funds to their working child... who could gain a PA tax benefit by contributing the funds to the grandchild's 529 account.
SHARE WITH A FRIEND.
If you need a tax appointment... www.baboiancpa.com