Tax Tip: Use Your Refund to Start Funding Your Child’s Future College Education

Lawndale News Chicago's Bilingual Newspaper - Education

It’s almost tax day and if you’re expecting a tax refund you might consider paying it forward—for your child’s college education. With college tuition and mandatory fees more than doubling in Illinois over the last decade, it’s hard to know how much to save for college. But with a College Illinois!® 529 Prepaid Tuition plan, you can lock in the cost of college now at today’s plan rates, so no matter how high tuition increases by the time your student is ready to attend college, tuition and mandatory fees will be covered for the schools in your plan. As a qualified 529 plan, College Illinois! offers great tax advantages in setting aside funds for future college costs:

Lawndale News Chicago's Bilingual Newspaper - Education

  • On the federal and state level, earnings on contributions are tax exempt as long as they are used to pay qualified educational expenses.
  • Illinois residents get a state tax deduction for contributions to the plan—up to $10,000 a year for individuals and $20,000 for couples filing jointly.
  • Also, with certain limitations, there is a federal gift-giving exemption, making the Program a particularly great tool for grandparents and other friends and family who would like to support a student’s future college education.

For more information on how you can help make college happen for your child while enjoying great tax benefits, visit or contact 1-877-877-3724 to talk with our call center from 8 am-5 pm, Monday through Friday. General enrollment runs through May 31st. Newborn enrollment, for children born between September 1, 2015 and August 31, 2016, runs through August 31, 2016.

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