Indiana taxpayers who contribute to a CollegeChoice 529 may receive a state income tax credit equal to 20% of their contributions. For contributions occurring through December 31, 2022, the maximum credit is up to $1,000 per year ($500 for married filing separately). Beginning January 1, 2023, the maximum increases to $1,500 ($750 for married filing separately).
Married taxpayers who previously contributed $5,000 annually to their 529 accounts may now choose to contribute $7,500 to receive an additional $500 benefit provided they meet other eligibility requirements.
For more information about CollegeChoice 529 tax credits, please see Indiana Department of Revenue Information Bulletin #98. The Bulletin will be updated to reflect the increased maximum tax credit after it goes into effect January 1, 2023.