529 Plan

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Ask Jason 2/10/12

By | February 10th, 2012|Categories: Potpourri of Tax Topics|Tags: , , , , , |

All of these are actual questions from readers over the last couple of weeks. Q: What are boxes 18-20 on a W-2 for? A: Some cities levy an income tax. For example, New York City, many cities that have a professional sports team, and most cities and towns in Ohio. If you earned wages subject to [...]

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Q & A Fridays — Car Expenses, Educator Expenses and 529 Plans

By | December 9th, 2011|Categories: Small Businesses Taxes|Tags: , , , |

Have a tax question burning in your mind? E-mail me at dinesentax@gmail.com.WARNING: I cannot provide specific tax advice to you by e-mail. If you e-mail a question, it will be published in a future Ask Jason segment with an answer that is general to your situation. I cannot personally reply with a specific answer. If you [...]

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Man Fails to Consult with Wife About Sec. 529 Withdrawal – Tax Disaster Ensues

By | November 10th, 2011|Categories: Potpourri of Tax Topics|Tags: |

You can take tax-free withdrawals from a Section 529 college savings plan if you use the withdrawal to pay for college expenses.  If you withdraw the money for other reasons, you're taxed on the withdrawal and are subject to a 10% penalty.  As a taxpayer learned in Tax Court on Thursday, this is true even if [...]

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Nebraska Adds Safer Investment Option to 529 Plan

By | October 24th, 2011|Categories: State Taxes|Tags: , , |

Nebraska is changing its 529 Savings Plan for college expenses, adding an investment option that will operate similar to a bank account.  This option will allow people to shield their money from market losses. 529 plans are a great way to save for college expenses.  No federal tax deduction is available for contributions to a 529 [...]

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College Savings Iowa Deduction Increases for 2011

By | January 7th, 2011|Categories: State Taxes|Tags: , , |

The amount of deduction you can take for contributions to a "College Savings Iowa" program has increased by $54 for 2011.  The maximum deduction is now $2,865 per child, up from $2,811 in 2010.  The deduction limit is per parent, per child, so a married couple with two kids could deduct up to $11,460 in 2011 [...]