Edvest announces 2021 state tax deduction increase

Edvest, Wisconsin’s 529 College Savings Plan, announced the 2021 state tax deduction has been raised to $3,380. Recent updates to the plan also include the expansion of qualified education expenses to pay for certain apprenticeship costs, partial student loan repayment, and a fee reduction. During the 2021 tax year, the increase in deductible taxable income will apply to contributions made to a Wisconsin college savings plan account, Edvest, or Tomorrow’s Scholar. Account owners, regardless of their relationship to a child, can now deduct up to $3,380 annually, per beneficiary, from their Wisconsin income tax. The tax deduction amount for the 2020 tax year is $3,340 and account owners have until Thursday, April 15, to contribute.