Rhode Islanders Eligible For Tax Advantages When Saving For College

PROVIDENCE, R.I., April 9, 2021 /PRNewswire/ — With the federal tax deadline extended to May 17, 2021, now is a…

PROVIDENCE, R.I., April 9, 2021 /PRNewswire/ — With the federal tax deadline extended to May 17, 2021, now is a good time for Rhode Islanders to lock in a deduction for next year’s tax return by saving for future education expenses through Rhode Island’s 529 savings program, CollegeBound.

RI residents can deduct up to $1000 from taxes with CollegeBound Saver

CollegeBound Saver is more than a convenient and flexible way to save for education. It offers features like tax-deferred growth and a state tax deduction for Rhode Island taxpayers. With CollegeBound Saver, saving for the future can mean saving on taxes today.

Rhode Island’s CollegeBound Saver and CollegeBound 529 plans are the only plans that allow Rhode Island residents to deduct savings from their state taxes. Individuals can deduct up to $500 in CollegeBound contributions and joint-filing households can deduct up to $1000. While Rhode Island residents must contribute to a CollegeBound plan to receive a deduction on their state taxes, CollegeBound is available to residents in any state.

«As a former public-school teacher, I know how important it is to plan ahead for higher education opportunities that open up for your child,» said Rhode Island General Treasurer Seth Magaziner, whose office administers CollegeBound. «In 2016, I overhauled the CollegeBound program to make it easier than ever to save.»

«If you are expecting a refund this tax season, a contribution to CollegeBound Saver could mean that next year’s refund is even bigger,» continued Magaziner. «Whether you want to contribute a little from each paycheck or when you have extra cash, CollegeBound allows you to save in the way that is best for you. You can even give friends and relatives a code to contribute directly into your child’s account.»

CollegeBound Saver makes it easy and affordable to save for future education related expenses. Designed to work for any schedule or budget, savings in a CollegeBound account can earn tax-free interest when used for education related expenses like tuition, housing, books, and even meal plans.

Opening an account takes 10 minutes and there is no minimum to get started. Visit CollegeBoundSaver.com to start saving today.

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SOURCE CollegeBound Saver