- \n
- For the 2025 tax year, the deductions are $25,400 per taxpayer, per Beneficiary for single filers, or $38,100 per tax filing, per Beneficiary for joint tax return filers.<\/li>\n
- For the 2026 tax year, the deductions will be increased to $26,200 per taxpayer, per Beneficiary for single filers, or $39,200 per tax filing, per Beneficiary for joint tax return filers.<\/li>\n<\/ul>\n
[\/et_pb_text][et_pb_button button_url=”\/images\/pdfs\/FAQ-Direct-Deposit-for-Tax-Refunds-2022.pdf” url_new_window=”on” button_text=”tax refund direct deposit faq” admin_label=”Button Light Blue” module_class=”button light-blue large” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Flexible Promo Section” module_class=”flexible-promo-image-right tax-benefits” _builder_version=”4.16″ da_disable_devices=”off|off|off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_direction=”left” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”left” global_colors_info=”{}”][et_pb_text admin_label=”Flexible Promo Content” module_class=”h2-dark” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Earnings grow tax-free<\/h2>\n
Earnings grow tax-free for both federal and state as long as your savings are used for eligible expenses2<\/sup>. Qualified expenses include tuition and required fees, room and board or certain off-campus rentals, books and supplies, computers and printers, internet access, and more (see FAQs).<\/p>\n
Other savings vehicles, such as mutual funds, are generally subject to annual income taxes and\/or the capital gains tax at withdrawal.[\/et_pb_text][et_pb_button button_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjM3In19@” button_text=”compare other savings options” admin_label=”Button Blue” module_class=”button blue large” _builder_version=”4.16″ _dynamic_attributes=”button_url” _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”right” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.collegeinvest.org\/wp-content\/uploads\/2022\/08\/2U9A7832_1-sfw.jpg” alt=”A dad and daughter sanding a birdhouse they are building” title_text=”2U9A7832_1-sfw” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Flexible Promo Image Left” module_class=”flexible-promo-image-left tax-benefits bottom” _builder_version=”4.16″ da_disable_devices=”off|off|off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”left” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.collegeinvest.org\/wp-content\/uploads\/2021\/09\/Grandparents-cc_saved-for-web.jpg” alt=”Grandparents sitting outside with their granddaughter and grandson” title_text=”Grandparents-cc_saved-for-web” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”right” global_colors_info=”{}”][et_pb_text module_class=”h2-dark content-tax-benefits” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Anyone can contribute, and everyone benefits<\/h2>\n
Anyone can contribute directly to your account (mom and dad, brother-in-law, or uncle) and they can take the income tax deduction as well (if they\u2019re also a Colorado taxpayer).<\/p>\n
Did you know you can make a gift to anyone else\u2019s CollegeInvest account and get the Colorado tax deduction for yourself? If you make a contribution and plan to claim the deduction on your Colorado income tax form, use our secure form to let us know.<\/p>\n
[\/et_pb_text][et_pb_button button_url=”https:\/\/dor.collegeinvest.org” url_new_window=”on” button_text=”claim your contribution deduction” admin_label=”Button Light Blue” module_class=”button light-blue large” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ module_class=”foot-notes-tax-benefits” _builder_version=”4.16″ _module_preset=”default” da_disable_devices=”off|off|off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”bottom” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.16″ _module_preset=”default” text_orientation=”center” background_layout=”dark” global_colors_info=”{}”]<\/p>\n
1<\/sup> Deductions are subject to recapture in subsequent years in which nonqualified withdrawals are made.<\/p>\n
2<\/sup> The earnings portion grows tax-free while in the account and subsequently used for qualified expenses. The earnings portion of nonqualified expenses are subject to state and federal income taxes, as well as a 10% federal penalty.<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”FAQ No Background” module_class=”faq-wrapper tax-advantages” _builder_version=”4.16″ background_enable_image=”off” da_disable_devices=”off|off|off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_style=”slide” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Headline” module_class=”headline” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Frequently asked questions about 529 tax benefits:<\/h2>\n
[\/et_pb_text][cumo_faq_item question=”What are the qualified expenses for 529 savings plans?” icon=”<\/i>” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
- \n
- Tuition and required fees<\/li>\n
- Required books and supplies<\/li>\n
- Certain room and board expenses or off-campus rentals<\/li>\n
- Computers (desktops, laptops, or tablets), peripheral equipment (including printers, scanners, monitors, keyboards, and mice) used solely by the student<\/li>\n
- Internet access for primary use by the student, excluding bundled costs of phone, cable, or pay TV services.<\/li>\n<\/ul>\n
[\/cumo_faq_item][cumo_faq_item question=”What if I can\u2019t use the funds?” icon=”<\/i>” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Nonqualified withdrawals are subject to federal and state income tax on the earnings portion and a 10% penalty on the earnings portion. State tax deductions may also be subject to recapture in subsequent years.<\/p>\n
There are two options to avoid penalties:<\/p>\n
- \n
- Change your Beneficiary to another family member, or yourself<\/li>\n
- Leave the funds in the account for a use at a later time<\/li>\n<\/ul>\n
[\/cumo_faq_item][cumo_faq_item question=”What if my student gets a scholarship?” icon=”<\/i>” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
You can use your funds to cover other eligible expenses like room and board, books, supplies, computer\/computer equipment, software, or internet access that some scholarships don\u2019t cover.<\/p>\n
You can change the Beneficiary to another family member, or even yourself.<\/p>\n
Simply leave the funds in the account for use for other eligible higher education expenses at a later time.<\/p>\n
Or, you may withdraw funds from your account equal to the scholarship amount without incurring the 10% federal penalty on the earnings portion. The earnings portion of your withdrawals may still be subject to state and federal income taxes. (You should carefully read the Plan\u2019s Plan Disclosure Statement, or consult a tax advisor for your specific situation.)<\/p>\n
[\/cumo_faq_item][cumo_faq_item question=”How do I report contributions to a CollegeInvest 529 Plan?” icon=”<\/i>” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
If you made a gift contribution to someone else\u2019s CollegeInvest account and are planning to claim the deduction on your Colorado income tax form, complete this secure form<\/a>. CollegeInvest will share the information you provide with the Colorado Department of Revenue.<\/p>\n
[\/cumo_faq_item][et_pb_button button_url=”\/faqs” button_text=”browse all faqs” button_alignment=”left” admin_label=”Button Light Blue” module_class=”button light-blue btn-large” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”More Benefits” module_class=”benefits-all-section more-benefit” _builder_version=”4.16″ background_image=”https:\/\/www.collegeinvest.org\/wp-content\/uploads\/2021\/09\/Background-taxbenefits@4x.png” da_disable_devices=”off|off|off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row module_class=”benefits-headline” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” animation_style=”slide” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Headline” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
More 529 plan benefits:<\/h2>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ module_class=”slider-more-benefits” _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.collegeinvest.org\/wp-content\/uploads\/2021\/09\/Benefit-Check.png” alt=”Green checkmark icon” title_text=”Benefit-Check” url=”https:\/\/www.collegeinvest.org\/529-savings-plan-benefits\/529-plan-flexibility\/” admin_label=”icon” module_class=”benefits-icon-check” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”Content” module_class=”benefits-col-content h2-light p-big-light” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Flexibility<\/a><\/h2>\n
When we talk with parents and grandparents about saving for college, flexibility is at the top of their concerns. It\u2019s also the most inherent benefit of 529 savings plans.<\/p>\n
[\/et_pb_text][et_pb_button button_url=”https:\/\/www.collegeinvest.org\/529-savings-plan-benefits\/529-plan-flexibility\/” button_text=”learn more” admin_label=”Button White” module_class=”button white” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.collegeinvest.org\/wp-content\/uploads\/2021\/09\/Benefit-Check.png” alt=”Green checkmark icon” title_text=”Benefit-Check” url=”https:\/\/www.collegeinvest.org\/529-savings-plan-benefits\/529-plan-savings-account-control\/” admin_label=”icon” module_class=”benefits-icon-check” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”Content” module_class=”benefits-col-content h2-light p-big-light” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Control<\/a><\/h2>\n
You as the Account Owner control the number of accounts, the beneficiaries, how much to save, what you pay for and when, and more. With the flexibility to change any of these when YOU want to.<\/p>\n
[\/et_pb_text][et_pb_button button_url=”https:\/\/www.collegeinvest.org\/529-savings-plan-benefits\/529-plan-savings-account-control\/” button_text=”learn more” admin_label=”Button White” module_class=”button white” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.collegeinvest.org\/wp-content\/uploads\/2021\/09\/Benefit-Check.png” alt=”Green checkmark icon” title_text=”Benefit-Check” url=”https:\/\/www.collegeinvest.org\/529-savings-plan-benefits\/affording-529-savings-plans\/” admin_label=”icon” module_class=”benefits-icon-check” _builder_version=”4.17.3″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”Content” module_class=”benefits-col-content h2-light p-big-light” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Affordability<\/a><\/h2>\n
No, you don\u2019t have to be a millionaire (or related to one) to have a CollegeInvest account. We want accessibility for all parents and grandparents to save for their education goals.<\/p>\n
[\/et_pb_text][et_pb_button button_url=”https:\/\/www.collegeinvest.org\/529-savings-plan-benefits\/affording-529-savings-plans\/” button_text=”learn more” admin_label=”Button White” module_class=”button white” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=”Swipe to see more” module_class=”skip-check-list-row white” _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”bottom” collapsed=”on” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”more-benefits-footer” _builder_version=”4.16″ _module_preset=”default” animation_style=”slide” animation_direction=”bottom” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_button button_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjgifX0=@” button_text=”back to all benefits” admin_label=”Button Deep Cerulean Blue” module_class=”button deep-cerulean btn-large” _builder_version=”4.16″ _dynamic_attributes=”button_url” _module_preset=”default” global_colors_info=”{}”][\/et_pb_button][et_pb_text admin_label=”Footnotes” module_class=”foot-notes background” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Investment returns are not guaranteed, and you could lose money, including principal.<\/p>\n
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