Tax savings still available for Oklahomans
As the tax filing deadline approaches, state treasurer Randy McDaniel encourages Oklahoma residents to take advantage of a state income tax deduction for 2020 by contributing Oklahoma University Savings Plan 529.
“As families file their taxes, it’s important to remember the many benefits of saving for college,” said McDaniel, Chairman of the Board. “The Oklahoma College 529 Savings Plan offers excellent investment choices, a low minimum contribution requirement, and offers a state income tax deduction. In addition, the funds can be used at colleges, universities, and technology centers in Oklahoma and across the country. “
Contributions made to a new or existing Oklahoma 529 College Savings Plan (OCSP) account up to the April 15 tax filing deadline may be claimed as 2020 state tax deduction. Restrictions apply.
According to the Federal Reserve, the average debt of a graduate student is over $ 32,000. On average, it takes over 18 years to pay off student loans, according to CNBC.
“Instead of spending years paying off student loans, resources could be better spent buying a house or starting a business,” McDaniel said. “When the people of Oklahoma help prepare their children and grandchildren for the cost of higher education, they have a positive impact on their lives. “
All OCSP income is exempt from federal and Oklahoma income tax when used for higher education expenses such as tuition, living expenses, books, supplies and fees. The funds can be used at most universities, colleges or private or public career technology centers nationwide. In addition, up to $ 10,000 per year can be used for tuition fees in private elementary and secondary schools.
For more information on the Oklahoma 529 College Savings Plan or to open an account, go to www.ok4saving.org or call (877) 654-7284.