Northwest Iowa — Did the end of the year 2015 sort of sneak up on you? It did for many of the folks here in northwest Iowa. And if you didn’t put any money into your child’s College Savings Iowa account before the end of last year, I have good news for you.You can still do so and get a break when you file your state taxes.
State Treasurer Michael Fitzgerald says the rules that required you to get the contributions to the state program by the end of the year have changed.
Fitzgerald says you don’t have to have an existing account to take advantage of the tax break. You can open a new account before the May 2nd deadline and deduct whatever you put in on your 2015 taxes.
He says the maximum tax break for 2015 is three-thousand-163 dollars. But, Fitzgerald says, you can double that if both parents have an account for their kids.
Fitzgerald says the maximum amount you can deduct is adjusted each year based on inflation — so you will be able to deduct a little more from your 2016 taxes.
Fitzgerald says you can even easily create an account online.
He says you can start an account for a child as soon as they are born and let it build until they are ready for college. You can withdraw the funds from the account for qualified college expenses, such as tuition, books, supplies and room and board at any eligible college, university, community college or accredited technical training school in the United States or abroad.