Tax Benefits Available for Oklahomans with Oklahoma 529
Free College Savings Webinar set for March 15
published February 15, 2023
Oklahoma City (Feb. 15, 2023) — With tax season having arrived, Oklahoma 529 can help Oklahomans save on their 2022 taxes when they open and contribute to Oklahoma’s official 529 college savings account.
Oklahoma 529 accounts provide owners a triple tax benefit: a 2022 state tax deduction for Oklahoma taxpayers, state and federal tax-deferred growth of any earnings in the account and tax-free withdrawals for qualified education expenses. Contributions made into a new or existing Oklahoma 529 account through the April 18 tax filing deadline are eligible for a 2022 state income tax deduction up to $20,000 for joint filers and $10,000 for single filers. Limitations apply.1
Additionally, the federal gift limit for 2023 has been increased to $17,000 per person, which means contributions up to that amount can be placed in an Oklahoma 529 account without the giver being subject to federal gift tax. Married couples can double that amount to $34,000 without being subject to the tax.
According to the Federal Reserve, the total amount of outstanding loan debt in the U.S. is $1.77 trillion and more than 45 million borrowers have student loan debt.2 On average, it takes 20 years to pay off student loans, according to Education Data Initiative.3 Funds in an Oklahoma 529 account can help minimize future education-related debt.
Leading up to the tax filing deadline, Oklahoma parents and grandparents interested in learning more about saving for education expenses are invited to attend a free webinar to be held Wednesday, March 15, at 11 a.m. Registration is required and can be done through the Oklahoma 529 website at oklahoma529.com/events.
# # #
About Oklahoma 529
Introduced in April 2000, Oklahoma 529 has served more than 81,000 students in paying for higher education tuition and expenses. As of Dec. 31, 2022, Oklahoma families have redeemed more than $770 million from Oklahoma 529 accounts. Oklahoma 529 funds may be used to pay for college, university, CareerTech, community college, graduate schools and more.
- 1To learn more about Oklahoma 529, its investment objectives, tax benefits, risks and costs, please see the Plan Description at oklahoma529.com. Read it carefully. Oklahoma taxpayers can reduce their state taxable income by up to $20,000 if married filing jointly ($10,000 filing single), from contributions made into an Oklahoma 529. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consider the investment objectives, risks, charges and expenses before investing in Oklahoma 529. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply.
TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributor and underwriter for Oklahoma 529.↩
- 2Kurt, Daniel. (2022, Nov. 26). Student Loan Debt: 2022 Statistics and Outlook. Retrieved from https://www.investopedia.com/student-loan-debt-2019-statistics-and-outlook-4772007.↩
- 3Hanson, Melanie. (2021, Dec. 16). Average Time to Repay Student Loans. Retrieved from https://educationdata.org/average-time-to-repay-student-loans.↩