2021 contribution limits increase for Utah income tax credit or deduction

The amount that Utah taxpayers can contribute to their my529 accounts that qualifies for a Utah state income tax credit or deduction has increased for tax year 2021.

Effective Jan. 1, 2021, the maximum contribution limit for individuals is $2,070 per qualified beneficiary.

For Utah-based trusts, flow-through entities and Utah-based corporations the maximum contribution limit is also $2,070 per qualified beneficiary.

Corporations are limited to a $2,070 deduction for contributions.

The maximum contribution limit for married couples filing a joint return, and for Utah-based trusts whose grantor filing status is married and filing jointly, is $4,140 per qualified beneficiary.

Maximum credit amounts are shown in the table below. The tax credit for 2021 is 4.95%, up to the maximum contribution limit.