Arizona Tax Incentive
This tax incentive provides a State of Arizona income tax deduction for contributions made to any state’s 529 plan. The incentive adds to the ongoing tax benefits of a 529 plan where assets grow tax-deferred and withdrawals are tax-free when funds are used for qualified higher education expenses .
Married couples can subtract up to $4,000 when filing jointly
Single individuals or heads of household may subtract up to $2,000
Families should consider their own state’s 529 plan before investing in another state’s plan. By considering in-state incentives, families may find that they more closely meet college saving goals. Families are urged to consult their tax advisor when making a college savings decision. Contact the Arizona Department of Revenue Taxpayer Information and Assistance Section at (602) 255-3381 with questions.
The Arizona Family College Savings Plan is not insured by the State of Arizona or any of the program providers. Neither the principal deposited nor the investment return is guaranteed by the State of Arizona or the program providers.