Keeping Up with the Changing 529 College Savings Plan

Keeping Up with the Changing 529 College Savings Plan

May 06, 2021
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The Oregon 529 college savings plan underwent significant changes at the start of 2020, based on 2019 state legislation. These changes include a switch from a tax rebate with a set maximum rebate per joint or single filer to a tax credit awarded on a sliding scale based on income levels and tax filing status. To determine what level of tax credit you are eligible for, please see the Oregon savings plan website https://www.oregoncollegesavings.com/tax-benefits or consult with your tax preparer.

Another significant change was contributions needed to be made by December 31, 2019 to be counted for the 2019 tax year. In prior years, contributions needed to be made by tax day to be counted for the previous tax year. For example, contributions could be made up to and on April 15, 2018 could be applied to the 2017 tax year.

Then in a full reversal, the Oregon savings plan has recently reverted back to April 15 being the deadline for contributions to be made for the prior tax year and receive the credit.



The tax information provided is general and educational in nature and should not be construed as legal or tax advice. As always, please seek tax advice from a professional tax preparer familiar with your specific tax situation.