If you made a contribution to the 529 plan, you will be able to claim a subtraction from income. If you withdrew money from your 529 plan, you may have to add the withdrawal back to your income if it was not used for educational purposes.
What is the Colorado 529 plan?
The Colorado 529 plan is a college savings plan that allows residents to deduct contributions to a qualifying savings plan (529) from the Colorado income tax return.
What college expenses are covered?
- Required fees, books, and supplies
- Certain room and board expenses
- Computers (desktops, laptops, or tablets) and Peripheral Computer Equipment (such as mouse, keyboards, printers, scanners, and monitors)
- Software (educational based)
- Internet Access (excluding the bundled costs of phone cable and/or pay tv services)
- Special needs equipment
What are the qualifications?
The subtractions is claimed in the same year the contributions are made.
Funds can be used at post-secondary educational institution participating in a student aid program administered by the U.S. Department of Education, including:
- Community colleges
- Public and private four-year colleges and universities
- Graduate and post-graduate programs
- Vocational and trade schools
For the most recent list of eligible schools, click here.
What are the limits?
For single filers no limit
For joint filers no limit
What about carryovers?
You do have the ability to rollover all or part of your 529 into another 529 account
What if I don’t use it for education expenses?
Withdrawals from the plan for things other than education are subject to federal and state income taxes and a 10% penalty. And, the possible recapture of any state income tax deductions.
- State Section
- Subtractions from Income
- CollegeInvest Contribution