If you didn’t get all the money put into your child’s College Savings Iowa plan you wanted to in the last year, you can still make donation and benefit on this year’s state tax return.
The College Savings Iowa contributions used to be cut off on December 31st, but State Treasurer Michael Fitzgerald says that’s no longer the case. He says the law has been changed so the deductions are handled just like an IRA.
Fitzgerald says you have several more weeks to make your contribution and still be able to deduct it on the 2017 tax return. “You have in Iowa until April 30th to put money in for last year’s college savings plan to get your deduction for 2017,” Fitzgerald says.
Fitzgerald says all College Savings Iowa account earnings are exempt from Iowa state income tax and Iowa taxpayers can deduct up to $3,239 in contributions per student account from their adjusted gross income for 2017.