DELAWARE - According to the Delaware government, a new law has been enacted that gives Delaware taxpayers who save for school with the DE529 Education Savings Plan new opportunities to save money.
“While our office oversees the management of the State’s investment portfolios, we also administer the DE529 Education Savings Plan which allows people to invest in the future of their loved ones,” said State Treasurer Colleen Davis. “Implementing a new tax deduction for DE529 contributions strengthens our commitment to helping people achieve a quality education without facing the possibility of years of student loan payments.”
Officials say that tax filers can deduct up to $1,000 of their contributions to DE529 Education Savings Plans every year on their Delaware tax returns, with that going number going up $2,000 for joint returns.
They note that the deduction will not be able for:
- Tuition for elementary or secondary public, private, or religious schools
- People with a federal adjusted gross income higher that $100,000, or $200,000 for joint returns.
"The Department of Finance is pleased to announce that this tax benefit will be available for qualifying contributions made throughout 2022,” said Secretary of Finance Rick Geisenberger. “With the completion of a newly launched personal income tax module of the State’s Integrated Revenue Administration System (IRAS), considerable programmatic changes were made to enable administration of this new tax benefit for qualifying 2022 tax filers.”
They say contributions made after December 31st, 2022 to the DE529 Education Savings Plans is eligible to be deducted.
According to officials, those without a DE529 Education Savings Plan can take advantage of the tax deductions by opening accounts today at 529.delaware.gov.