As 2022 comes to a close, Delaware taxpayers have new opportunities next year to save money.
Delawareans who save for school with the DE529 Education Savings Program may qualify for new tax deductions when you file state taxes next year.
“So the general legislation passed earlier this year (HB 145) to establish a $1,000 tax deduction for contributions made to a Delaware 529 Education Savings Plan," said Colleen Davis - Delaware’s state treasurer. "It also includes the ability to take advantage of a $5,000 tax deduction for contributions made to the 529 (DEpend) ABLE account.”
Davis says the DEpendABLE Account is for persons with disabilities, while DE529 Education Savings Plan makes it easy and affordable for parents or caregivers to plan ahead for the cost of higher education, trade schools and other post secondary education programs.
Davis hopes these two accounts can have a greater impact on both children and the disability community.
Davis says Delaware tax filers are eligible to deduct up to $1,000 of contributions to the DE529 Education Savings Plan on their Delaware tax return or $2,000 for couples filing a joint return.
Meanwhile, Davis says it also includes the ability to take advantage of a $5,000 tax deduction for contributions made to the 529 (DEpend) ABLE account or $10,000 for couples filing a joint return.
She says the ABLE plan has been around for a few years, but many people have not heard about it.
She notes there are just under 200 participants currently signed up for the ABLE Account and 29- to 30,000 First State residents signed up for the DE529 Education Savings Program.
$40.6 million was held in DE529 accounts in Delaware - as of the end of the third quarter of 2022.
