Wisconsin has extended tax deductions in its EdVest 529 college savings plan to grandparents. Beginning with their 2002 tax return, grandparents will be able to deduct up to $3,000 of annual contributions to EdVest per grandchild.
The plan also allows contributors to contribute five years worth of maximum contributions, or $55,000 by individuals or $110,000 by a married couple, without having to pay gift taxes.
"The state tax deduction is a great incentive to get more of Wisconsin savings for the education of our youth," said Jack Voight, treasurer for the state of Wisconsin.