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Income Tax Fact Sheet 8, K 12 Education Subtraction and Form

Income Tax Fact Sheet 8, K 12 Education Subtraction and Form

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one of the most frequent questions we get at the education plan is can I use the funds in my 529 account for private K-12 tuition the answer depends on which state you live in the tax cuts and jobs Act was signed into law in December 2017. this federal law allows families to use 529 plans to pay for up to ten thousand dollars in tuition at K-12 schools the changes became effective January 1st 2018. however not all states adopted the federal government's expanded definition of qualified expenses these states do not consider K-12 tuition a qualified expense and a withdrawal made for K-12 expenses may be subject to state tax consequences in New Mexico House Bill 342 passed in 2023 the legislation allows New Mexico residents to claim the state tax deduction for contributions used to pay for additional Federal qualified educational expenses including up to ten thousand dollars per year for tuition at K-12 schools the legislation went into effect June 16 2023. if your state offers ta

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