FAQ: What are the WI State benefits with EdVest?
If the beneficiary is your child, grandchild, great-grandchild, niece, nephew or yourself then contributions of up to $3,000 per beneficiary are deductible from Wisconsin taxable income each year.
Note: Contributions must be postmarked by December 31 to be eligible for that year’s deduction.
Below are some other significant things to consider:
– Indicate your eligible contribution amount on Form 1, line 11 under “Other Subtractions,” Code 14 to claim a deduction. Note: The deduction you take can’t be more than your total income for the year.
– If you are filing as “married” or “jointly filing” the total deduction per child cannot exceed $3,000.
– If you are filing as “divorced parents” then the total deduction that may be claimed for each child is $3,000. The maximum for each former spouse is $1,500 unless the divorce judgment specifies a different division.
– Grandparents of a beneficiary can claim deductions on contributions made on behalf of their grandchildren, provided the grandchild is related to the grandparent either biologically or through adoption.
– Married grandparents, filing jointly, may claim a total deduction on contributions up to $3,000 per grandchild.
– Aunts, uncles, and great-grandparents can also claim deductions on their Wisconsin state income tax return on contributions made on behalf of nieces, nephews, and great-grandchildren.
– Even though the individual who is claiming the tax deduction must be a Wisconsin taxpayer, the beneficiary on the account does not need to live in Wisconsin.
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