Nebraska taxpayers are reminded that contributions to college savings accounts in the Nebraska Educational Savings Trust (NEST) must be postmarked by Dec. 31 to qualify for the 2014 tax year state income tax deduction, State Treasurer Don Stenberg said today. The maximum deduction this year is $10,000 for a couple filing jointly or for a single tax filer, up from the previous $5,000 deduction.
Stenberg said account owners who contribute to their accounts electronically have until 10:59 p.m., CT, on Dec. 31 to make their contributions.
“This will be the first year that Nebraskans will benefit from the significantly higher tax deduction that was approved by the Nebraska Legislature in 2013. We are grateful for the Legislature’s action to approve the higher tax deduction, which is attracting more families to open college savings accounts through NEST and providing them with responsible and varied investment options,” Stenberg said.
The number of Nebraska account owners has grown from 57,000 in June 2013, when the new legislation was passed, to 63,000 today. In all, NEST has more than 220,000 account owners across the United States.
“Setting up a 529 college savings account for a child or grandchild—or contributing to an existing account—is one of the most thoughtful and long-lasting gifts you can give this holiday season,” added Stenberg, who as State Treasurer is Trustee of NEST. “A state-sponsored 529 savings account provides assurance and peace of mind for both the giver and the recipient. Knowing that your money is invested wisely and that your child or grandchild will be in a better position to pay for college is one of the best ways to celebrate the holidays.”
Stenberg said setting up a NEST college savings account takes less than 10 minutes. Descriptions of the four plans can be found at the Treasurer’s website. Click on the College Savings tab and then on the About the Plans link.
Stenberg offered the following advice about end-of-the-year NEST contributions: