If you are a Colorado taxpayer, every dollar you contribute to a CollegeInvest 529 can be deducted from your Colorado state income tax return. When you file your taxes, you also have the option to direct deposit your refund to your CollegeInvest account. More information can be found here.
Better yet, anyone can contribute directly to your account – mom and dad, brother-in-law, or uncle – and they can take the income tax deduction as well (if they’re also a Colorado taxpayer).
Did you know you can make a gift to anyone else’s CollegeInvest account and receive a Colorado tax deduction for yourself? If you do make a contribution, and are planning to claim the deduction on your Colorado income tax form, click here to use our secure form to let us know. If you have any questions, please email us at general@collegeinvest.org.
Earnings grow tax free for both federal and state, so every dollar you save for college can work harder.
Withdrawals used for qualified higher education expenses (tuition, fees, room and board, supplies, computers and internet access, etc.) aren’t taxed on your federal or state tax return. Other savings vehicles, such as mutual funds, are generally subject to annual income taxes and/or the capital gains tax at withdrawal.
