Treasurer McDaniel: Tax savings still available to Oklahomans saving for college
With the tax filing deadline approaching, State Treasurer Randy McDaniel is encouraging Oklahomans to take advantage of a 2020 state income tax deduction by contributing to the Oklahoma 529 College Savings Plan.
“As families file their taxes, it’s important to remember the many benefits of saving for college,” said McDaniel, board chair. “The Oklahoma 529 College Savings Plan has excellent investment choices, a low minimum contribution requirement, and offers a state income tax deduction. Plus, the funds can be used at colleges, universities and technology centers in Oklahoma and across the nation.”
Contributions made to a new or existing Oklahoma 529 College Savings Plan (OCSP) account through the April 15 tax filing deadline can be claimed as a 2020 state tax deduction. Limitations apply.
According to the Federal Reserve, the average college debt a student graduates with is more than $32,000. On average, it takes over 18 years to pay off student loans, according to CNBC.
“Instead of spending years paying off student loans, the resources could be better used for buying a home or starting a business,” said McDaniel. “When Oklahomans help prepare their children and grandchildren for the cost of higher education, they are making a positive impact on their lives.”
Any OCSP earnings are federal and Oklahoma income tax free when used for higher education expenses such as tuition, living expenses, books, supplies and fees. Funds may be used at most private or public universities, colleges or career technology centers, nationwide. In addition, up to $10,000 per year may be used for tuition at private elementary and secondary schools.
For more information about the Oklahoma 529 College Savings Plan or to open an account, go to www.ok4saving.org or call (877) 654-7284.