Oregon College Savings Plan Changes

Julia Carlson |

The Oregon College Savings Plan is a 529 savings account that has special tax advantages to help people save for educational expenses like tuition, computers, supplies and more. Recent legislative action has made significant changes to the plan that will impact parents and grandparents who are utilizing this plan.  The current tax deduction is being replaced by a refundable tax credit. Tax year 2019 is the last year the contributions will qualify for a deduction. However, contributions made in 2019 and prior can still be carried forward up to four years. The deadline to make contributions to a 529 College Savings Plan and still qualify for the current deduction is December 31, 2019.   

Contributions made on or after January 1, 2020 will qualify for the new 529 account refundable tax credit.  The refundable credit amount is based on a taxpayer’s filing status and adjusted gross income.  The credit is the lesser of $300 married filing jointly ($150 for all other filing statuses) or a percentage of the amount contributed based on your adjusted gross income.   The deadline to make contributions for the new refundable credit is the earliest of the date the return is filed or the filing due date, without regard to extension.  More information can be found at www.oregoncollegesavings.com

Based on your individual situation, consider making additional contributions in 2019, before this deduction goes away and take advantage of the four year carry forward provision.  We would be happy to review your situation and provide a tailored solution that is right for you.

Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.

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