Save on Your Taxes While Saving for College – You can deduct the amount invested in your Michigan Education Trust (MET) savings fund on your state income tax returns.
OAKLAND COUNTY MOMS EDUCATION ARTICLES & RESOURCES
Save on Your Taxes While Saving for College
Doing your taxes, or having someone else do your taxes, forces you to think about your personal finances. But did you know that your retirement plans, flex care accounts, child care expenses and even college savings programs can have an effect on the outcome of your income taxes each year?
If you haven’t taken advantage of these tax breaks in the past, you are essentially missing out on that potential savings. You should be taking full advantage of all tax breaks for which you are eligible.
For example, if you have invested in a college savings plan through the Michigan Education Trust (MET), Michigan’s 529 prepaid tuition program, you are able to deduct the amount paid in on your state income tax return this year. If you purchased your contract as a lump sum, monthly purchase or payroll deduction, the entire contract amount contributed may be deducted. In addition to annual income tax savings, disbursements from MET for qualified higher education expenses are tax-free. Not a MET contract holder? If you purchase a contract this year, you will save on your state income taxes. This year’s enrollment period is open now through January 31, 2025. For more information, www.SetwithMET.com.
“Investing in a 529 college savings program, such as the Michigan Education Trust, is an excellent example of a way to save on your taxes while investing in your future,” said Robin Lott, executive director of the Michigan Education Trust and the Michigan Education Savings Program.
This Save on Your Taxes While Saving for College article is provided by Michigan Education Trust (MET), Michigan’s 529 prepaid tuition plan which allows for easy transfer of undergrad tuition for any child residing in Michigan. For more information, visit www.SetwithMET.com.
For more info on Save on Your Taxes While Saving for College, visit www.SetwithMET.com
