Great news! College Savings Iowa’s tax deduction amount has gone up once again for Iowans contributing to their college savings accounts. For 2019, Iowans can deduct up to $3,387 in contributions per beneficiary account from their state taxable income.*
For example, a married couple with two children will be able to deduct up to $13,548 in College Savings Iowa contributions on their 2019 state taxes.* College Savings Iowa account owners who are Iowa taxpayers can deduct their individual contributions to all of the beneficiary accounts they control.
A contributor to College Savings Iowa who is not an Iowa taxpayer may be entitled to a state income tax deduction, depending on the law of the state where he or she lives or pays taxes. Please consult your tax advisor to learn more about your state-based benefits.
*If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.