ALBANY, GA (WALB) - If you want to save on your state taxes, and help your child's education, here's how!
Path 2 College, 529 plan is the official college savings plan for the state of Georgia.
Executive Director of the program, Mitch Seabaugh, said it is the only 529 college savings plan that allows Georgia citizens can get a state income tax deduction up to $4,000-- if you file a joint return, per year, per beneficiary. It's $2,000 if you file single or head of household.
"You get a tax break just putting money into a savings account. Earnings grow tax-deferred. That means you do not pay any taxes on the earnings as it grows throughout the year. And then when you take the money out and you use it for qualified education expense, the money comes out federal and state tax-free," explained Seabaugh.
Seabaugh said you can start a plan before April 17, and still deduct it from your 2017 tax return.
"If you put money into a 529 plan, up to April 17 when the tax returns are due, you can still take that contribution off on your 2017 tax return. So you still have a tax deduction you can avail yourself of, even though 2017 is over with," said Seabaugh.
He urges everyone to "invest in your child's future."
"A child who actually has a college savings plan, studies have shown they are seven times more likely to actually go to college," state Seabaugh, "And so that's why we want to do what we can to get the word out, raise awareness throughout the state."
To apply for an account, click here.