New Deductions for Delawareans helping to fund children’s college programs, donate to disabilities

DELAWARE-Delawareans have two new ways to help deduct taxes this year, all while helping children pay for school and helping the disabled.

That’s through DE529, and house bill 145. Delawareans who save for school with the DE529 Education Savings Plan qualify for a new tax deduction on their state returns of up to 1,000 dollars.
House Bill 145 also creates a tax deduction for contributions to a DEPENDABLE account for people with disabilities, with the deduction applying to any amount up to 5,000 dollars.
Delaware officials say it’s all thanks to an overhaul of their taxing services, that now allows Delawareans to deduct the contributions, even if it’s to members outside of their household.

“if you are a taxpayer here in Delaware and they have a Delaware 529 you can take advantage of the tax incentive of up to 1,000 dollars for making a contribution to that child’s 529,” said Delaware State Treasurer Colleen Davis.

The state is also launching the first state First Steps Initiative helping to match up to 100 dollars for families who open new 529 accounts for children ages 5 or younger.
The deadline to apply for that program is December 31st.