With tax day just around the corner, The Education Trust Board of New Mexico, the organization that sponsors New Mexico’s 529 education savings plan, announces that New Mexico taxpayers can receive an unlimited state tax deduction for contributions they make to the plan.
A 529 savings plan was created by the IRS to help families plan for future education expenses, hopefully avoiding future debt.
A 529 plan is one of only four plans in the country to offer this unlimited state income tax deduction. Anyone can open an account at any time with no minimum contribution required.
The full amount of contributions made by the account owner during the year to The Education Plan can be deducted on that year’s state income tax return.
Once someone opens an account in family members and friends can make gift contributions into the account. If they are New Mexico taxpayers, they also qualify for a state income tax deduction for those contributions.
You can also call (877) 337-5268 to speak with a plan specialist.