STATE INCOME TAX
DEDUCTIONS AND
YOUR 529 PLAN.
A 529 college savings plan can play a vital role in helping make
college more affordable. Did you know there are differences when
considering which 529 plan to use?
EXPLORE YOUR OPTIONS
Each state’s plan is different: some states may offer tax deduction benefits for
contributions to 529 plans. Take a look at the map below for more information!
ILLINOIS
Home of Bright Start College
Savings Program.
TAX PARITY
These states offer tax deductions
for contributions to any 529 plan,
regardless of state.
START SAVING TODAY
Contact your financial advisor to see how
Bright Start® may fit into your overall
financial plan or visit brightstartsavings.com
for more information.
TAX NEUTRAL
These states do not offer tax
deductions for 529 contributions.
IN-STATE TAX BENEFIT
These states offer tax
deductions on contributions
to the in-state 529 plan.
STATE BY STATE BREAKDOWN
Contact your financial advisor to see how Bright Start® may fit into your overall financial plan or visit brightstartsavings.com for more information.
STATE
MAXIMUM ANNUAL STATE INCOME TAX BENEFIT
ILLINOIS:
Home of Bright Start College Savings Program
Illinois
$10,000i, $20,000j
WHO QUALIFIES
STATE TAX RATE
Any taxpayer
3.75%
CARRY FORWARD
TAX PARITY STATES: These states offer tax deductions for contributions of any 529 plan, regardless of state
Arizona
$2,000i, $4,000j
Any taxpayer
4.54%
Kansas
$3,000i, $6,000j
Any taxpayer, per beneficiary
4.60%
Maine
$250 if AGI is $100,000 or lessi, $200,000 or lessj
Any taxpayer, per beneficiary
4.75%
Missouri
$8,000i, $16,000j
Acct owner/spouse only
6.00%
Montana
$3,000i, $6,000j
Acct owner/spouse only or custodian/parent
6.90%
Pennsylvania
$14,000i, $28,000j
Any taxpayer, per beneficiary
3.07%
10 Years
TAX NEUTRAL: AK, CA, DE, FL, HI, KY, MN, NC, NE, NH, NJ, NV, SD, TN, TX, WA, WY
IN-STATE TAX BENEFIT: These states offer tax deductions on contributions to their in-state 529 plan
Alabama
$5,000i, $10,000j
Any taxpayer
Arkansas
$5,000i, $10,000j
Any taxpayer
6.90%
Colorado
Full contribution amount, up to taxpayer’s taxable income
Any taxpayer
4.63%
Connecticut
$5,000i, $10,000j
Any taxpayer
6.99%
6 Years
D.C.
$4,000i, $8,000j
Acct owner only
8.95%
5 Years
Georgia
$2,000
Any taxpayer per beneficiary
6.00%
5 Years
Idaho
$4,000i, $8,000j
Any taxpayer
7.40%
Iowa
$3,239i1, $6,478j1
Acct owner only, per beneficiary
8.98%
Louisiana
$2,400i, $4,800j*
Any taxpayer, per beneficiary
6.00%
Unlimited
Maryland
$2,500i, $5,000j
Any taxpayer
5.75%
10 Years
Any taxpayer
5.10%
ij
Massachusetts $1,000i, $2,000j Through 2021
5.00%
Michigan
$5,000i, $10,000j
Any taxpayer
4.25%
Mississippi
$10,000i, $20,000j
Any taxpayer
5.00%
Nebraska
$10,000ij, $5,000s
Acct owner or parent/guardians of ugma/utma accounts 6.84%
New Mexico
Full contribution amount
Any taxpayer
4.90%
New York
$5,000i, $10,000j
Acct owner only
8.82%
North Dakota
$5,000i, $10,000j
Any taxpayer
2.90%
Ohio
$2,000ij
Any taxpayer, per beneficiary
5.00%
Unlimited
Oklahoma
$10,000i, $20,000j
Any taxpayer
5.00%
5 Years
Oregon
$2,330i1, $4,660j1
Any taxpayer
9.90%
4 Years
Rhode Island
$500i, $1,000j
Acct owner only
5.99%
Unlimited
Any taxpayer
7.00%
Acct owner only, per beneficiary*
5.00%
South Carolina Full contribution amount
Utah
5% tax credit on contributions up to $1,920i1, 3,840j1*
Vermont
10% tax credit on contributions up to $2,500 , $5,000
Acct owner only, per beneficiary
8.95%
Credit
Virginia
$4,000ij; Fully deductible if age 70 or older
Acct owner only*
5.75%
Unlimited
West Virginia
Full contribution amount
Any taxpayer
6.50%
Wisconsin
$3,100ij1*
Any taxpayer, per beneficiary*
7.65%
i
j*
Credit
Unlimited
i. Filing individually j. Filing jointly s. If married filing separately 1. Adjusted annually for inflation *Talk with your 529 plan advisor for full details on restrictions, stipulations, and or
requirements. Source: www.savingforcollege.com, 2017 Carry forward some states allow taxpayers who contribute above the maximum annual tax deduction to carry forward excess
contributions to future state income tax returns. State tax savings reflect full deduction of $10,000 over the carry forward period. State tax rate assumes joint tax filers in the maximum state
tax bracket for 2017.
This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that
may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.
Tax related statements are based on informal guidance from the Illinois Department of Revenue that is not binding on the Department. This material is provided
for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under
U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.
The Bright Start® College Savings Program is administered by the State Treasurer of the State of Illinois and distributed by OppenheimerFunds Distributor, Inc.
OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager of the Plan. Some states offer favorable tax treatment to their
residents only if they invest in the state’s own plan. Investors should consider before investing whether their or their designated beneficiary’s home state offers
any state tax or other benefits that are only available for investments in such state’s qualified tuition program and should consult their tax advisor. These securities
are neither FDIC insured nor guaranteed and may lose value.
Before investing in the Plan, investors should carefully consider the investment objectives, risks, charges and expenses associated with municipal fund securities.
The Program Disclosure Statement and Participation Agreement contain this and other information about the Plan, and may be obtained by visiting
brightstartsavings.com or calling 1.877.43. BRIGHT (1.877.432.7444). Investors should read these documents carefully before investing.
The Bright Start® College Savings Program is distributed by OppenheimerFunds Distributor, Inc. Member FINRA, SIPC
225 Liberty Street, New York, NY 10281-1008
© 2017 OppenheimerFunds Distributor, Inc. All rights reserved.
IL1111.110.0417 April 2017