Extra credit: Tax benefit limits raised

Utah has raised the maximum my529 contribution amounts eligible for a state tax credit.

Effective January 1, 2023, individuals qualify for a Utah state tax credit for contribution amounts up to $2,290 per qualified beneficiary.

For Utah-based trusts and flow-through entities, the maximum contribution amount eligible for the tax credit is also $2,290 per qualified beneficiary.

Corporations are limited to a $2,290 deduction for contributions.

The maximum contribution amount for the tax credit for married couples filing a joint return, and for Utah-based trusts whose grantor filing status is married and filing jointly, is $4,580 per qualified beneficiary.

The tax credit for 2023 is 4.65% of the total year’s contribution, up to the maximum contribution amount. The Utah Legislature changed the tax rate this year from 4.85% to 4.65%.

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