I was discussing 529s for K-12 with a colleague whose kids are in private school. We were discussing the feasibility/ability to put money into the 529, draw it out a day/week/month later for tuition purposes, then get the tax deduction for state income tax.
It seems the amendment to allow using 529 funds for K-12 was introduced by Ted Cruz, but since Texas has no state income tax this change won't affect his state. But in states where state income tax deductions are possible the states are going to lose (significant?) tax revenue. Some states limit the amount able to be deducted, but some don't (South Carolina, West Virginia, New Mexico).
https://www.npr.org/sections/ed/2018/01/08/575167214/congress-changed-529-college-savings-plans-and-now-states-are-nervous
Anyone planning on doing this? It would seem surprising if the states (especially the ones that have no maximum deduction) didn't adjust their tax laws accordingly.
It seems the amendment to allow using 529 funds for K-12 was introduced by Ted Cruz, but since Texas has no state income tax this change won't affect his state. But in states where state income tax deductions are possible the states are going to lose (significant?) tax revenue. Some states limit the amount able to be deducted, but some don't (South Carolina, West Virginia, New Mexico).
https://www.npr.org/sections/ed/2018/01/08/575167214/congress-changed-529-college-savings-plans-and-now-states-are-nervous
Anyone planning on doing this? It would seem surprising if the states (especially the ones that have no maximum deduction) didn't adjust their tax laws accordingly.
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