Question: We opened a 529 college-savings plan in our home state of New York for a grandchild. But early this year, we moved to Idaho. Can we continue to deduct our contributions to the 529 on our Idaho income tax return?
Answer: You won’t get an Idaho state income tax deduction for contributing to the New York 529 plan. You can, however, qualify for an Idaho income tax deduction of up to $6,000 per year (or $12,000 for married couples filing jointly) if you open an account with the Idaho 529 plan and contribute to it. You can keep your New York 529 plan or roll the money over to the Idaho plan.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Here's Why Walmart Deals are Better Than Amazon Prime DayWith sales for Walmart Deals and Amazon Prime Day running comparable on price, one factor separates them.
-
How to Get Rid of the Things Your Kids Don't Want While DownsizingWhether moving by necessity or choice, downsizing means deciding what to do with your stuff. Here's what to do if the kids and grandkids don't want it all.
-
Coverdell ESAs vs. 529 Plans: Which Should You Choose?Savings Accounts These savings accounts can offer tax benefits for school and retirement expenses. Here’s how.
-
Ask the Editor: Reader Questions, April 25 — 529 plansIn our latest Ask the Editor round-up, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions related to 529 plans.
-
Best 529 Plans of 2025Check out the best 529 plans of 2025 and find the best plan for your child or grandchild’s college savings.
-
529 Plans Hit a New Milestone: Why They're So PopularRecently, 529s hit a new milestone with over half a trillion dollars being saved in plans across the country. Why are 529 plans so popular?
-
529 Plans: A Powerful Way to Tackle Rising Education CostsContributions to 529 plans grow tax-free and are not taxed when they are used to pay for qualified educational expenses for the beneficiary.
-
Tax Tips for Transferring Excess 529 Plan Funds to Roth IRAs: The Tax LetterThe Tax Letter 529 plans can help blunt the cost of paying for college. But if you want to use leftover funds there are some tax tips to bear in mind.
-
529s: No Longer the Ho-Hum Investing Device for CollegeChanges to the plans allow for the savings to be rolled into a Roth IRA, as long as certain rules are met, if a child decides not to pursue their education.
-
529 Plans: Give the Gift of Education (and Compounding)As the cost of college tuition skyrockets, parents and grandparents can take advantage of tax-efficient 529 plans and higher limits on gift and estate taxes.
