July 28, 2008
Wisconsin Residents Can Receive The 529 Gift Tax
The annual 529 gift tax benefit is available for parents and grandparents who are taxpayers in Wisconsin and who make contributions to the section 529 plan on behalf of their child or grandchild. Wisconsin taxpayers will receive a $3,000 deduction for each dependent beneficiary, themselves, or grandchild. You must be a Wisconsin resident to receive the deduction. The federal amount is $12,000 (or $24,000 for married joint filers) per year, per child. Simply stated, you can contribute up to $12,000 without incurring a federal gift tax. Any amount exceeding the 529 gift tax exclusion limit is considered a taxable gift and must be reported on your federal gift tax return.