DES MOINES, Iowa – State Treasurer Roby Smith is making sure Iowans know there is still time to contribute to their College Savings Iowa account and deduct the amount from their 2023 state taxes. “Who knew taxes could be fun? Well, when you can put money aside for a child’s education and reduce your state income taxes, it can be!” Smith said. “If you are an Iowa taxpayer and want to maximize the $3,785 state tax deduction amount on your 2023 taxes, you can continue to make contributions until the April 30, 2024 deadline.”
The Iowa income tax deduction applies to each student on the account that receives contributions. “Families can make the most of the deduction when both parents open an account for each child,” continues Smith. “For example, a married couple with two children could have a total deduction of $15,140 if they contribute the full 2023 amount.”
In addition to the state tax deduction for Iowans, all savers get the benefits of tax-deferred earnings and tax-free qualified withdrawals. Funds in an account can be used for tuition, room and board, books, computers, supplies and other education-related expenses. The student can attend any eligible education institution, including two- and four-year colleges, apprenticeship programs and trade schools. Additionally, up to $10,000 can be withdrawn to pay for tuition expenses in connection with enrollment at a K-12 institution per year or used for repayment of any qualified education loan.
To learn more about the Plan, visit CollegeSavingsIowa.com or call (888) 672-9116. Connect with College Savings Iowa on Facebook, Instagram and X to stay informed on current events and updates. For additional details about the Plan, read the Program Description.
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