Hello feimster. Thanks for participating in our event.
With two children you could potentially deduct up to $62000 on your Colorado return for 2023.
Colorado residents can contribute to several plans through College Invest. More information can be found at https://www.collegeinvest.org/
The maximum amount you can contribute depends upon which plan you choose. I believe the highest at this time is around $350,000.
However, the maximum amount you can deduct from income on your state tax return in 2023 is $31000 per beneficiary (student) for a joint married return.
There is no deduction on the federal return. However the funds in the account do grow tax free. As long as all withdrawals are used for qualified expenses, there will be no tax due. If any disbursements are not used for qualified expenses, they would be added to taxable income in the year of the disbursement.
Here is a Colorado Dept of Revenue resource you may find helpful.
