Other State Tax Benefits

In addition to federal tax benefits, if you are a resident of a state listed below, you may be eligible for a state income tax deduction based on contributions to the Montana 529 plan.

Review federal benefits available to all US taxpayers.

Pennsylvania:
For individuals subject to Pennsylvania income tax, contributions made to any 529 plan, including the MFESP, may be deducted from taxable income on the taxpayer’s annual personal income tax return. The maximum annual amount that may be deducted is currently $12,000 per beneficiary per taxpayer. The deduction cannot result in the taxable income being less than zero.

The new state law also provides that the earnings portion of any qualified withdrawal is exempt from Pennsylvania income tax.

Maine:
For individuals subject to Maine income tax, receive up to a $250 tax deduction per beneficiary based on contributions to any 529 plan, including the MFESP. Maine taxpayers with incomes of $100,000 or less if a single filer and $200,000 or less for returns married joint filers or heads of household are eligible for a tax deduction on the contributions made in a calendar year.

Kansas:
For individuals subject to Kansas income tax, any contributor may deduct up to $3,000 for single filers and $6,000 for joint filers per beneficiary for contributions to any state sponsored 529 plan, including the MFESP.

Please Note:
Before investing in any 529 plan, you should consider the benefits of your home state's 529 plan. It may provide taxpayers with state tax and other benefits that are only available through your home state's 529 plan. You should also consult your financial, tax, or other advisor to learn how state-based benefits (or limitations) would apply to your specific circumstances. You also may wish to contact your home state's 529 plan[s], or any other 529 college savings plan, to learn more about those plans' features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

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