Gov McCrory, NC General Assembly make it harder to save for college starting Jan 1

North Carolina National College Savings PlanJust it case you missed this tidbit from last years tax “reform” law. This is the law that increased taxes on the bottom 80% of taxpayers, decreased taxes for the top 20%, and kept loopholes like the $1500 sales tax cap on yachts.   It eliminated the “back to school” sales tax holiday and increased a wide variety of fees.  In fact there were so many changes, you might have missed this one.  People saving for their kid’s college expenses through NC’s “529″ college savings plan used to be able to get a state tax deduction on the first $2,500 of contributions to the plan each year.  No more, as NC’s 529 plan informed savers this morning:

Legislation enacted by the North Carolina General Assembly (G.S. §105-134.6) which will go into effect January 1, 2014 repeals the NC 529 state tax deduction on Contributions.

I guess it isn’t enough just to cut K-12 education funding.  We’ve also got to make it harder for families to save for college.  At what point to people get mad about this? This Governor and this legislature aren’t for helping families. They are for helping the rich in this state and helping themselves.

5 Comments

  1. Kate

    November 18, 2013 at 12:18 pm

    Does that mean contributors still get the tax break for contributions made this year? Tax years confuse me…..

  2. Polly

    November 18, 2013 at 7:55 pm

    Yes, you will receive deduction for tax year 2013,but beginning 1-1-14 no deduction for year ’14.

  3. mike

    November 18, 2013 at 11:07 pm

    Yes kate you can deduct up to $5000 ( file joint) or $2500 (file single) for THIS year 2013. Deduction is eliminated for 2014. McCrory and team stick it to us again.

  4. Lee

    November 19, 2013 at 6:16 pm

    Well, my donations will go into another savings acct. Too many”charges” for the miniscule earnings anyway!

  5. Stan

    November 24, 2013 at 11:17 am

    I hate these disgusting right wingers. No, “hate” is too weak a word. I agree with the spoken part of the song “Eulogy for a Dream” by the band Blood for Blood. Seriously.