Time is Running Out to Get 529 Plan Tax Write Off for 2011

Save for College & Save Taxes

HURRY UP to get this done before year-end!

  Get your IL 529 College Savings Plan contribution in before year end and get a write off on your IL Income Tax Return.    There are two plans to choose from in IL (Bright Directions and Bright Start).  I use Bright Directions for my three kids.

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Illinois raised our state income tax rate from 3% to 5% in 2011.  The extra tax revenue is all going to funding pension funds.  Illinois residents can deduct contributions of up to $20,000 per year from their state tax return.  This also works for grandparents that are interested in helping out their grandchildren.

Contribution          $20,000

IL Tax Rate                5% _

Tax Savings                $1,000

Average IL Public-in-State Cost in 2011 = $20,339

Average Public Out-of State Cost in 2011 =$30,300

 

For more information on Bright Directions go to  www.brightdirections.com.

If you need help setting an account, call me at 630-942-9007.

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