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It’s Not Too Late! Take Advantage of 2020 Edvest Tax Benefits.

Feb 05, 2021
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Although the April 15th tax deadline is quickly approaching, you still have time to contribute to Edvest or open a new account to be eligible for a Wisconsin tax deduction of up to $3,340 per child. Limitations apply*.

Enjoy Significant Tax Benefits while Saving for College

Wisconsin residents, regardless of their relationship to a child, can deduct up to $3,340 in 2020 and up to $3,380 for 2021 on their state tax returns. This tax deduction is per child so if you have separate accounts for two children or grandchildren you may be eligible for a state tax deduction of up to $6,680. Three accounts… $10,020 and so on.

Plus, any Edvest investment earnings grow tax-deferred and are tax-free at both the state and federal level when used to pay for qualified college expenses such as tuition, living expenses, books, computers/tablets and more!

It’s easy to add 2020 Edvest contributions to your Wisconsin income tax forms. Tax software can automatically calculate the impact of any annual 529 contributions. If you complete a paper tax return, please download and print Wisconsin Department of Revenue (DOR) 2020 Schedule CS as well as the 2020 Schedule CS Instructions. You will find your 2020 contribution history on quarterly statements or securely, online at Edvest.com.

Carry Forward for Future Tax Benefits

Are you rolling over balances from an out-of-state 529 plan or plan to make a large contribution from savings, inheritance or bonus? If your contributions are greater than the maximum annual state tax deduction, you may carry forward the balance until exhausted. To take advantage, please use the 2020 Schedule CS and consult a tax professional.

Want to Really Build your College Savings? Superfund.

Families anticipating large future education expenses like graduate school may be interested in accelerating contributions now. Grandparents may be interested in jump-starting college savings for grandchildren while realizing estate tax planning benefits. There’s no federal gift tax on contributions up to $15,000 per year for single filers and $30,000 for married filers. There’s even an option to gift amounts up to $75,000 for single filers and up to $150,000 for married filers if pro-rated over 5 years. This means you could make a one-time gift equivalent to the 5-year amount and it could all qualify for the federal gift tax exclusion. Consult your tax professional.

Edvest Tax Season Fast Facts

  • 2020 WI tax deduction is $3,340 per child and increases to $3,380 in 2021.
  • 1099-Q forms reporting any 2020 withdrawals have mailed. You may also download by securely logging in to your Edvest account. If you made withdrawals both before and after March 6, 2020 you will receive multiple 1099-Q forms due to the transition in 2020 to the new administrative platform.
  • Claim your WI tax deduction using 2020 Schedule CS, most tax software, or consult your tax professional.
  • Carry-forward additional contributions into future tax years using 2020 Schedule CS.
  • Consider superfunding to help a child or grandchild’s college savings grow with up to five years of contribution while still qualifying for an annual federal gift tax exclusion. Learn more.

If you are making your contribution online, your “contribution year” will default to 2021, but you may change it to 2020 by calling Edvest Customer Service at 1-888-338-3789.

Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein.

*To learn more about the Wisconsin College Savings Plan, its investment objectives, tax benefits, risks and costs, please see the Plan Description at Edvest.com. Read it carefully. Wisconsin taxpayers can qualify for a state tax deduction up to $3,340 per beneficiary from contributions made into a Wisconsin 529 college savings plan. 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. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. If the funds aren’t used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Wisconsin College Savings Plan.


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