Even though there are only a few days of 2012 left, there is still time to save significant bucks on your Iowa Income Tax!
Note: Even if you don’t file Iowa income tax forms, you might be able to save in your state using the same method. Be sure to check!
Here’s the deal in a nutshell:
You can put money into a “529” account. That money is to be used for educational expenses. You could read that as “paying for college expenses for kids or grandkids.” (Actually, it’s much less restrictive than that.) And, in Iowa, you can claim a bit over $2900 per donor per account as a deduction on your tax form!
To many of us, that’s significant!
Consider this: If you and your wife each put $3,000 into each of two kids’ accounts, you’ve stashed away $12,000 for future college expenses. And you can claim a deduction of over $11,600 on your Iowa income tax. How’s that for a good deal!
The money is invested, of course, and might increase in value. My fund, now three years old, has grown at a rate of 5+%/year. The website does point out that one might lose money in it.
You can learn about the Iowa version here: https://collegesavingsiowa.s.upromise.com/
The beneficiaries do not need to be Iowans and the schools attended do not need to be Iowa schools. Your state probably has a similar system so, if interested, head for Google and learn what you can. Time’s a runnin’ out for this year!
If you have someone headed for college sometime in the next 1 to 18 years, you might be interested in the book below. In case you haven’t checked, college expenses “ain’t what they used to be!” (My first year at Iowa State College cost a bit over $1,000 for everything!)
[azon_profit_poster Bestwaytosave]
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