To receive a tax deduction for contributions to an Oregon College Savings Plan on your 2019 taxes, contributions will need to be made prior to December 31st, 2019. Starting January 1st, 2020 the Oregon College Savings Plan is moving to a tax credit. If you file an Oregon income tax return, contributions made to your account before the end of 2019 are deductible up to a certain limit. For 2019, the limit individual taxpayers are allowed to deduct is $2,435 or $4,865 if filing jointly. You may also carry forward a balance over the following four years for contributions made before the end of 2019.
Recapture provisions apply. This means that if you withdrew funds for non-qualified expenses from your Oregon College Savings Plan account and you claimed a tax benefit for that year’s contribution, the state of Oregon will recapture any Oregon State income tax benefits that you had accrued on the principal portion of that withdrawal.
Worth noting, any funds that you plan to roll over from another 529 College Savings Plan are considered “new contributions” and will count towards the limit you’re allowed to deduct in a given tax year.
For more information, visit The Oregon College Savings Plan website.
3/1/2020 11:07:14 pm
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