Bill > S1405

This bill proposes to amend existing tax law to allow for a deduction on state income taxes for yearly contributions made to qualified tuition programs, often referred to as 529 plans, which are designed to help families save for future education expenses. Specifically, it introduces a new provision that allows taxpayers to deduct contributions to programs like the U.Fund or U.Plan, which are offered by the Massachusetts Educational Financing Authority. However, there are income limitations on this deduction: single individuals earning less than $60,000, married individuals filing separately with less than $50,000, and heads of household earning less than $80,000 can deduct up to $5,000, while married couples filing jointly with less than $80,000 can deduct up to $10,000. Importantly, these contribution and income limits will automatically adjust over time to keep pace with inflation, using a 3-year average of the Consumer Price Index for Massachusetts, or will remain the same if the index decreases.