kerbie18 Posted February 1, 2021 Share Posted February 1, 2021 Any tax experts here? I spent the last 17 years or so having my paycheck reduced in order to contribute to a Kentucky 529 plan. It is specifically to save for your kid's college fund, which I did, for 17 friggin years... Now my kid is actually IN college. My daughter is forced to claim my college savings on her taxes. She is literally getting punished because I planned waaaaay ahead. I ******* hate taxes.... Link to comment Share on other sites More sharing options...
GT4494 Posted February 1, 2021 Share Posted February 1, 2021 I understand that every state is different in the way they process the 529 plan. Sorry! Link to comment Share on other sites More sharing options...
railfancwb Posted February 1, 2021 Share Posted February 1, 2021 Did you make the 529 contributions with after income tax income or pre-tax? Link to comment Share on other sites More sharing options...
crockett Posted February 1, 2021 Share Posted February 1, 2021 Not much of a help in this case other than suggesting a proper CPA. I gave up on trying to find ways to save taxes, other than standard deductions and business expenses lowering the profit, inside the business. At some point I started investing my time forward, into new business ideas and how to increase profit. In general, focusing on saving money is a dead end. At some point you will only live on bare minimum and spend so much time and energy on being frugal that nothing is left to get ahead of the game. Link to comment Share on other sites More sharing options...
kerbie18 Posted February 2, 2021 Author Share Posted February 2, 2021 5 hours ago, railfancwb said: Did you make the 529 contributions with after income tax income or pre-tax? AFTER Link to comment Share on other sites More sharing options...
Al Czervik Posted February 2, 2021 Share Posted February 2, 2021 First thing my financial/tax guru said about 529 plans, is "don't !@#%ing do it!" I listened, and am happy I did. Link to comment Share on other sites More sharing options...
GT4494 Posted February 2, 2021 Share Posted February 2, 2021 14 hours ago, kerbie18 said: AFTER Logic says you only pay taxes on the interest for the monies. This should happen as it gets withdrawn. If you are lucky they tax whoever gets the money (the student) since logically their income bracket is such they owe no taxes for the year and most likly should get it all back. Still, unfortunately you need a read by a CPA!! Link to comment Share on other sites More sharing options...
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