Bright Start 529
How the Bright Start 529 plan's Illinois tax deduction works, what it's worth, and a calculator for your deduction.
Bright Start 529 Illinois deduction calculator
Bright Start 529 tax deduction
Bright Start is Illinois's direct-sold 529 college savings plan. Illinois taxpayers can deduct up to $10,000 a year of contributions ($20,000 married filing jointly) from Illinois income, and at the 4.95% flat rate that's worth up to $495 ($990 joint) a year. The deduction is taken on Schedule M of Form IL-1040, and you should exclude rollovers' earnings and prior-year contributions, as the plan's taxpayer guide explains.
Using the money
Earnings grow tax-free and withdrawals are tax-free for qualified college costs, K-12 tuition (up to the federal annual limit), apprenticeships and some student loan repayment, and up to $35,000 can roll to the beneficiary's Roth IRA after 15 years under federal rules. Nonqualified withdrawals can trigger Illinois recapture of past deductions. Project growth with the 529 calculator.
Common questions
How much can I deduct for Bright Start 529?
Up to $10,000 a year, or $20,000 married filing jointly.
How much does the Bright Start deduction save?
Up to $495 a year ($990 joint) at Illinois's 4.95% rate.
Sources
More savings and interest calculators: Dollar Inflation Calculator · WACC Calculator · FDIC Insured Amount · Georgia 529
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.