New Jersey's 529 Plan

Saving for college can look different for everyone and it varies widely by state. While some students may get scholarships others have to look to loans, 529 plans, or working while they get a higher education. For those who invest in 529 plans, there are two options, prepaid tuition plans and education savings plans. Prepaid tuition plans are pretty much just that, they cover tuition and mandatory fees.  Education savings plans will help cover tuition, room and board, and mandatory fees.

If you live in New Jersey there are new tax law changes that affect their 529 plans.  Starting this year New Jersey taxpayers who have a NJBEST plan may qualify to deduct up $10,000 if they have a taxable gross income under $200,000. This deduction is for New Jersey taxpayers that make contributions into the NJBEST plan: parent, grandparent, other family members or friends. New Jersey is the 35th state to offer an income tax benefit like this. Find out more about NJBEST.

It can be stressful to figure out college savings and even more so the tax implications related to them.  At Hark & Associates, PC, we provide high quality service with the highest ethical standards in the business of CPA firms. We’ll answer your tax questions in a way that’s convenient for you: via phone call, zoom meeting, or in person.  You’ll find friendly, professional, and knowledgeable associates who will leave you feeling confident. Ask us how we can help with planning your child’s future today.