Can I claim any tax credits or deductions for Backer gifts?


Some states offer additional tax advantages for gifting money into a 529 plan, usually in the form of a state income tax deduction or credit. If you are the Backer (gifter) to a 529 plan, you may be able to claim these benefits, depending on your state of residency.

The following states do not provide any additional state tax benefits for contributions made into a 529 plan, regardless of whether the 529 plan was set up through Backer: Alaska, California, Delaware, Florida, Hawaii, Kentucky, Nevada, New Jersey, North Carolina, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these states, you will not miss out on any tax advantages when saving with Backer.

If you live in one of the following states, you may claim certain state tax benefits for contributions you have made into any 529 plan, including one set up through Backer (enrolled through Backer, not connected via Backer): Arizona, Kansas, Minnesota, and Pennsylvania.

If you are a resident of one of these states, you should investigate your state’s options.

Please consult your tax advisor regarding your particular tax situation and consult a lawyer to discuss any legal advice.

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