1. Can I Deduct Contributions to a 529 Account?

    College Students Waiting in Admission's OfficeA 529 plan, which is also known as a qualified tuition plan, is an effective investment tool you can use to save money for your children’s college expenses. While the Internal Revenue Service does not permit account owners to take a 529 plan tax deduction on their federal income taxes, it may be possible to claim a state tax deduction for contributions you make to the plan. However, the rules for taking this deduction vary by state.