Yes, if you are a Virginia resident and are 70 years old or older on or before December 31 of the tax year, you can deduct the entire amount contributed to a Virginia529 inVEST account (or other Virginia529 plans like Prepaid529 or CollegeWealth) on your Virginia state income tax return.
While the standard deduction for people under 70 is capped at $4,000 per account, the rule for those 70+ allows for a 100% deduction of the contribution.
Key Details for 70+ Year Olds (Virginia State Tax):
- No Cap: You are not limited to the $4,000 cap that applies to younger taxpayers; you can deduct the full amount contributed, even if it exceeds $4,000.
- Carryforward: If you cannot use the full deduction in one year, you can carry forward any undeducted amounts to future tax years.
- Owner Requirement: You must be the owner of record for the account to claim the deduction.
Important Notes:
- This is a Virginia state tax deduction, not a federal tax deduction.
- The deduction is only applicable if you pay Virginia state income taxes.
