Consider college savings plan as you go over taxes for 2017
by State Treasurer Curtis Loftis | February 22, 2017 11:32 am
April 18 is rapidly approaching! As you gather your W2 and 1099 forms in preparation for Tax Day, don’t forget to consider the tax benefits provided by South Carolina’s Future Scholar 529 College Savings Plan.
Future Scholar has one of the best state tax deductions of any 529 plan in the country — South Carolina tax payers enjoy a state income tax deduction of 100 percent of their contributions to Future Scholar accounts by claiming them on the SC 1040 Long Form.
For South Carolina residents who don’t have a Future Scholar 529 plan open yet, tax time is a great time to get started. All earnings grow free of federal income tax and contributions are tax-free when used to pay for qualified higher education expenses at any eligible college, university, community college or accredited technical training school in the US or abroad.
Not only are assets in Future Scholar accounts exempt from federal and state income taxes, but according to a recent fee study released by Savingforcollege.com, Future Scholar has one of the lowest account fees in the country.