Tax Deduction For College Savings
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With this year’s tax deadline extended, State Treasurer Randy McDaniel wants to remind Oklahomans that there is still time for a 2019 state income tax deduction by investing in their children or grandchildren’s higher education.
The deadline to file 2019 state and federal income taxes is Wednesday, July 15, and contributions made to an Oklahoma 529 College Savings Plan (OCSP) account through that date are eligible.
“Making contributions to an Oklahoma 529 College Savings Plan is something I encourage all parents and grandparents to consider,” said McDaniel, board chair for OCSP.
“Not only is it the only 529 college savings plan that offers an income tax deduction for Oklahomans, it also offers excellent investment choices.”
The average amount families save for their child’s education is around $18,000, just enough to cover one year of higher education costs in Oklahoma.
This shortfall remains a primary reason Treasurer McDaniel encourages saving for college as early as possible.
“Saving early shows children the value placed on higher education by adults in their lives,” said McDaniel. “To continue Oklahomans’ success in college and beyond, a strong foundation must be set. The Oklahoma 529 College Savings Plan exists to help parents and grandparents create a foundation that improves expectations and outcomes.”
It’s also never too early to get a head start on 2020 tax benefits, as state income tax refunds can be invested back into a child or grandchild’s Oklahoma 529 College Savings Plan.