MichealKnight
Full time employment: Posting here.
- Joined
- May 2, 2019
- Messages
- 520
(Currently have no 529. Have 2 kids - 14 and 10)
https://www.pa529.com/pdf/ip/IP-Enrollment-Guide.pdf
"STATE TAX DEDUCTION
Pennsylvania taxpayers can deduct contributions to the PA 529 IP from their Pennsylvania taxable income up to $16,000 per beneficiary, per year. For married couples, contributions up to $32,000 per beneficiary, per year, are deductible, provided each spouse has taxable income of at least $16,000."
Was hoping someone would verify my layman's definition.....
I have no W-2 or "earned income".
Between rents, Treasury/CD interest, dividends, cap gains, etc......let's say my income is $100,000. PA has a flat-tax rate of 3.07% on all income.
So on $100,000 I'd pay $3,070 in PA income tax.
However. me and DW contribute a total of $64,000 a year (32k per kid).
Does that mean I save the 3.07% on the $64.000?
Almost sounds too good to be true in that - - it's already an automative 3.07% return on investment .....
Would appreciate any opinions. Thanks
https://www.pa529.com/pdf/ip/IP-Enrollment-Guide.pdf
"STATE TAX DEDUCTION
Pennsylvania taxpayers can deduct contributions to the PA 529 IP from their Pennsylvania taxable income up to $16,000 per beneficiary, per year. For married couples, contributions up to $32,000 per beneficiary, per year, are deductible, provided each spouse has taxable income of at least $16,000."
Was hoping someone would verify my layman's definition.....
I have no W-2 or "earned income".
Between rents, Treasury/CD interest, dividends, cap gains, etc......let's say my income is $100,000. PA has a flat-tax rate of 3.07% on all income.
So on $100,000 I'd pay $3,070 in PA income tax.
However. me and DW contribute a total of $64,000 a year (32k per kid).
Does that mean I save the 3.07% on the $64.000?
Almost sounds too good to be true in that - - it's already an automative 3.07% return on investment .....
Would appreciate any opinions. Thanks