Personal Finance & Money Asked by 2q. on June 3, 2021
DC College savings plan states the following and I’m wondering if the $8,0000 deduction for married couples filing jointly applies for all children or one child. For example, would a couple with two kids be able to take up to a $16,000 deduction?
"DC taxpayers who are account owners are eligible for a deduction in computing DC income tax of up to $8,000 for married couples filing jointly, where they have separate accounts, and $4,000 for individual filers for contributions to their DC College Savings Plan account." [1]
[1] FAQ item "Are there any special tax benefits for DC taxpayers?" – https://www.dccollegesavings.com/home/faqs.html
I read that as per couple, not per child per couple. Further, note that there needs to be two accounts, one in each spouse's name, to get the full $8,000 deduction. Essentially, each spouse gets the deduction they would be entitled to if filing individually.
Answered by chepner on June 3, 2021
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