North Carolina enacts tax deduction for 529 contributions
North Carolina has enacted a tax deduction for contributions to the state's 529 savings plan as part of the budget bill signed by the governor. The maximum annual deduction is $750 ($1,500 for joint filers) and is allowed only for taxpayers below certain income levels: $100K joint, $80K Head of Household, $60K single, and $50K married filed separately.
The tax deduction is effective for the 2006 tax year and expires after the 2010 tax year.
Return to 529 News centerThe tax deduction is effective for the 2006 tax year and expires after the 2010 tax year.