Virginia 529 Plan Tax Deduction: Save Up to $30,000

Are you a Virginia resident looking to save for your child's education? The Virginia 529 Plan offers a generous tax deduction that can help you reach your savings goals faster.

What is the Virginia 529 Plan?

The Virginia 529 Plan is a state-sponsored college savings plan that allows you to save for future education expenses. The plan offers two investment options: a pre-selected portfolio of mutual funds or a guaranteed return option.

Tax Benefits of the Virginia 529 Plan

The Virginia 529 Plan offers significant tax benefits for Virginia residents. Contributions to the plan are deductible from your state income taxes, up to a maximum of $30,000 per year for individuals or $60,000 per year for married couples filing jointly.

How to Qualify for the Tax Deduction

To qualify for the Virginia 529 Plan tax deduction, you must meet the following requirements:

• Be a Virginia resident
• Contribute to a Virginia 529 Plan
• Itemize your deductions on your Virginia income tax return

How to Calculate the Tax Deduction

The amount of the tax deduction you can claim is based on your filing status and the amount of your contribution. The following table shows the maximum tax deduction for each filing status:

How to Claim the Tax Deduction

To claim the Virginia 529 Plan tax deduction, follow these steps:

1. Contribute to a Virginia 529 Plan.
2. Itemize your deductions on your Virginia income tax return.
3. Enter the amount of your contribution on the "Virginia 529 Plan Contributions" line of your tax return.

Other Benefits of the Virginia 529 Plan

In addition to the tax deduction, the Virginia 529 Plan offers several other benefits, including:

• Tax-free earnings: Earnings on your investments in the Virginia 529 Plan are not subject to state income taxes.
• Flexible investment options: You can choose from a variety of investment options to meet your needs.
• Low fees: The Virginia 529 Plan has some of the lowest fees in the nation.
• Gift-giving opportunities: You can give the gift of education by contributing to a Virginia 529 Plan for a child or grandchild.

Is the Virginia 529 Plan Right for Me?

The Virginia 529 Plan is a great way to save for your child's education and reduce your state income taxes. If you are a Virginia resident, you should consider contributing to a Virginia 529 Plan.

Frequently Asked Questions

• What are the investment options for the Virginia 529 Plan?

The Virginia 529 Plan offers two investment options: a pre-selected portfolio of mutual funds or a guaranteed return option.

• How do I open a Virginia 529 Plan account?

You can open a Virginia 529 Plan account online or by contacting the Virginia 529 Plan directly.

• How do I contribute to a Virginia 529 Plan account?

You can contribute to a Virginia 529 Plan account by check, electronic funds transfer, or payroll deduction.

• What are the fees associated with the Virginia 529 Plan?

The Virginia 529 Plan has some of the lowest fees in the nation. The annual fee for the mutual fund option is 0.25%, and the annual fee for the guaranteed return option is 0.15%.

• Can I withdraw money from a Virginia 529 Plan account?

You can withdraw money from a Virginia 529 Plan account at any time. However, if you withdraw money for non-qualified expenses, you will be subject to income tax and a 10% penalty.