Plain English Breakdown
The bill summary and text do not provide specific details on when the changes will take effect.
Increasing Tax Deduction for College Savings
This act increases the personal income tax deduction for contributions to college savings plans called 529 programs.
What This Bill Does
- Increases the amount of money people can deduct from their taxes when they put money into a 529 program.
- Changes the current limit from $5,000 to $15,000 for individual taxpayers.
Who It Names or Affects
- People who contribute to 529 college savings plans in their state.
- Individual taxpayers who file personal income tax returns.
Terms To Know
- 529 Program
- A type of college savings plan that allows people to save money for future education costs, which can be used at many colleges and universities.
- Personal Income Tax Deduction
- An amount subtracted from the total income before calculating how much tax a person owes.
Limits and Unknowns
- The bill does not specify when this change will take effect.
- It only applies to contributions made after the effective date of the law.