Is there an Oregon income tax deduction?
Yep! If you pay Oregon income tax, contributions made to your account are deductible up to a certain limit (which is adjusted every year to account for inflation). For 2018, individual taxpayers are allowed to deduct $2,375 ($4,750 if filing jointly)* for contributions made to any account in the Oregon College Savings Plan, so long as contributions are made prior to filing your state tax return that year.
Note: Recapture provisions apply. This means that if you withdrew funds for non-qualified expenses from your Oregon College Savings Plan account and you claimed a tax benefit for that year’s contribution, the state of Oregon will recapture any Oregon State income tax benefits that you had accrued on the principal portion of that withdrawal. Read through our Plan Disclosure Booklet (PDF) for more info.
Worth noting, any funds that you plan to roll over from another 529 College Savings Plan are considered “new contributions” and will count towards the limit you’re allowed to deduct in a given tax year. It’s best to contact a tax advisor if you’re still unsure about your tax implications might be.
* In 2019 taxpayers may deduct up to $2,435 ($4,865 if filing jointly).