If you contributed to the 529 plan, you will be able to claim a tax credit. If you withdrew money from your Oregon 529 account, you may have to add the withdrawal back to your income if it was not used for educational purposes.
What is the 529 plan?
Its main purpose is to help families contend with the future high costs of their children’s or grandchildren’s college or vocational education. The Oregon College Savings Plan was rebranded as "Embark" in September 2025. Starting in tax year 2025, funds can be used for a broader range of K-12 expenses beyond tuition, including curriculum materials, tutoring, and test prep. 529 funds can also now be used for professional certifications, trade school programs, and registered apprenticeships.
What are the qualifications?
Funds can be used for any post-secondary institution that is accredited throughout the United States and internationally, meaning the school is eligible for federal financial aid. This can include university, college, community college, trade schools, and graduate schools.
What are the limits?
Oregon residents can claim a state tax deduction for their contributions, with the maximum deduction dependent on income. For 2025, the maximum deduction is $4,870 for joint filers and $2,435 for single filers. The lifetime contribution limit is $400,000.
What about carryovers?
beneficiaries can roll over up to $35,000 over their lifetime from a 529 plan to a Roth IRA, provided the 529 account has been open for 15 years or more. Annual rollover amounts are limited to the yearly Roth IRA contribution limit, which is $7,000 in 2025.
What if I don’t use it for education expenses?
Non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax. If you claimed a credit based on your contributions, your credit may have to be recaptured.
Where to Enter?
- State section
- Three dots to edit the State return
- Credits
- Refundable Credits
- Enter amount in box labeled "Oregon 529 College Savings Network account contributions credit"
Oregon also allows you to apply your state refund to your 529 plan.
- State section
- Three dots to edit the State return
- Payments
- Oregon 529 College Savings Plan
- Oregon College Savings Plan