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 Kentucky 529 plan?
KY Saves 529 helps you save for the rising costs of education.
What are the qualifications?
- College, trade school, and K-12 tuition1
- Room and board
- Fees
- Computers and laptops
- Books
- Even things like tools, if required by the program
What are the limits?
Contributions qualify for the current federal $15,000 annual gift exclusion.
What if I don’t use it for education expenses?
Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes.
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