MADISON — As the deadline to file tax returns for most taxpayers gets closer, next week — April 6 through 13 — officially kicks off Governor Tony Evers’ Money Smart Wisconsin Week. Edvest 529, Wisconsin’s direct-sold 529 college savings plan, would like to help remind folks that they can save money for their child’s college while also earning triple tax benefits ahead of the upcoming tax deadline.
Money Smart Wisconsin is a collaboration between the Governor’s Council on Financial Literacy and Capability and the Wisconsin Department of Financial Institutions. The week-long initiative raises awareness about the importance of financial literacy.
As one of several organizations taking part in Money Smart Wisconsin, Edvest 529 is helping families earn their maximum tax refund three different ways, including:
1. State Income Tax Deduction
Wisconsin taxpayers who contribute to an Edvest 529 account, regardless of their relationship to a child, can deduct up to $3,860 annually per beneficiary from their 2023 Wisconsin state income taxes.
2. 100% Tax-Deferred Growth
In addition to a state income tax deduction, any account earnings grow 100 percent tax-deferred at both the state and federal level.
3. Tax-Free Withdrawals for Qualified Expenses
Account owners can withdraw funds tax-free from an Edvest 529 account when paying for qualified education expenses at any accredited college, university, or technical school across the U.S. and many schools abroad. Qualified higher education expenses include expenditures like tuition, fees, books, supplies, equipment, certain room and board (housing and food) costs, and more.