Hello Grove, Mueller - Here Are Your Articles for Wednesday, December 18, 2019
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Tax Benefit for Oregon College Savings Plan Changes


2019 is the final year that a contribution to an Oregon College Savings Plan (529) account will qualify for a subtraction for Oregon income tax.  While in prior years you had until the due date of your tax return to make a 529 contribution, to qualify for a 2019 subtraction your contributions must be made by December 31, 2019.  The contribution limit for 2019 is $2,435 ($4,865 if married filing a joint return). Contributions made in 2019 and prior years can still be carried forward for up to four years. 

Effective January 1, 2020, the tax benefit changes to an Oregon tax credit that depends on your filing status and adjusted gross income.  The credit is the lesser of $300 for married filing jointly ($150 for all other filing statuses), or:

(a) the amount contributed, if the taxpayer's AGI does not exceed $30,000;

(b) 50% of the amount contributed, if the taxpayer's AGI exceeds $30,000 but does not exceed $70,000;

(c) 25% of the amount contributed, if the taxpayer's AGI exceeds $70,000 but does not exceed $100,000;

(d) 10% of the amount contributed, if the taxpayer's AGI exceeds $100,000 but does not exceed $250,000; or

(e) 5% of the amount contributed, if the taxpayer's AGI exceeds $250,000.

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Grove, Mueller & Swank, P.C.
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475 Cottage Street NE, Suite 200
Salem, OR 97308-2122
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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