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Minnesota families can contribute to or open an account before Dec. 31 to qualify for a 2023 tax deduction

                                        

The holiday season is in full swing, and many are thinking about what gifts to give their children, grandchildren, or other loved ones.

This year, Minnesota families can skip out on the stress of getting expensive tech or must-have toys. With MNSAVES, Minnesota’s 529 College Savings Plan, they can give something lasting, memorable, and valuable – the gift of higher education.

“Gifting with MNSAVES is something that can last a lifetime and is something your child will remember,” said Jim Mandler, senior marketing manager for MNSAVES. “And not only is it a lasting gift, but a quick and easy one, too, that offers some nice tax benefits.”

Anyone can easily make a gift contribution to a MNSAVES account through Ugift or by mail and take advantage of unique tax benefits, including a Minnesota income tax deduction.

MNSAVES is a tax-advantaged 529 college savings plan, meaning that money you invest with the program could help you on state income taxes. For 2023, Minnesota taxpayers can reduce their state taxable income up to $3,000 if married filing jointly. Additionally, any earnings are 100 percent free from federal and Minnesota state taxes when used for qualified education expenses.

Families gifting larger amounts to a MNSAVES account have an opportunity to support a loved one’s college education and contribute to legacy and estate planning. There’s no federal gift tax on contributions you make up to $17,000 per year if you’re a single filer, or $34,000 if you’re filing jointly. More details can be found on MNSAVES’ gifting page.

The tax deduction deadline is Sunday, Dec. 31. It takes only 15 minutes and just $25 to open an account on the MNSAVES website.

For more information about MNSAVES, to open an account, or to explore the new and improved website, visit mnsaves.org. MNSAVES is also on Facebook.