Give the Gift of Education with Future Scholar - and Get a Tax Break for Yourself
We’ve all heard the old saying, “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.”
The same idea can be applied to a child. If you give a child money, you may support him for a day, a week or even a year. But by giving the gift of education, you can empower a child to support himself for a lifetime.
It’s true that providing the opportunity for a college education is among the most effective ways to teach a child “to fish,” but did you know that saving with the Future Scholar 529 College Savings Plan yields some major tax-related benefits for you as well?
Take Some of the Sting out of Tax Season!
You want to help a child on the path to future success. At the same time, you want to ensure that you’re using your financial resources in the most efficient way possible. That’s why you’ll be excited to learn that contributing to a Future Scholar 529 College Savings account provides the following exceptional tax advantages:
1. Deductible on South Carolina State Income Taxes
When you contribute funds to a Future Scholar account, you receive a dollar-for-dollar deduction on your South Carolina state income tax return, a benefit that yields tax savings that can really add up. It’s important to note that these tax deductions only apply to contributions to Future Scholar accounts and are not available if you contribute to another college savings plan or use other college savings vehicles.
You’ll be glad to know that South Carolina is one of just a handful of states that will allow you to make contributions to a Future Scholar account for the previous year - right up until the April 15th tax deadline! This means you still have time to save on your 2020 taxes.
2. Tax-Free Earnings at the State Level
While the upfront tax deduction is truly remarkable, don’t forget that there are longer-term advantages as well. When you invest in a Future Scholar 529 College Savings Plan, your money has the opportunity to grow tax-free at the state level. This means any earnings you accumulate and spend on qualifying educational expenses are not subject to state income taxes, and that’s not all!
3. Tax-Free Earnings at the Federal Level
Not only do your funds grow tax-free at the state level, but even Uncle Sam won’t tax your earnings when they are used for qualified educational expenses, a benefit that adds even more to your potential tax savings.
Plus...You’re in Control
While they’re pretty amazing, tax savings are just the beginning! Enjoy the peace of mind and comfort that comes from knowing you’re investing in a plan that puts you in the driver’s seat. Here are some other perks of Future Scholar contributions:
- You decide when and where. Unlike other savings plans that require you to make rigid upfront commitments, Future Scholar is all about choices. The beneficiary can decide when to use the funds and where they will be spent by choosing from one of the many eligible higher education institutions across the U.S. and in many other countries.
- Future Scholar savings can be used to pay for more than just tuition. Funds can also be used to cover other qualified educational expenses like room and board, books, supplies, and equipment.
- If your child doesn’t use the money because of scholarships or other circumstances, the money can be transferred to another qualified beneficiary or left alone to continue growing for future use–like post-graduate programs.
When you provide for a child’s education by investing in a Future Scholar account, you don’t have to sacrifice flexibility for tax savings. You get the best of both worlds.
Make Your First Tax-Deductible Contribution Today
With no minimum contribution amount, multiple investment choices that include age-based options and the ability to automate contributions, it’s easy to see why South Carolina’s Future Scholar 529 College Savings Plan is the smart and easy way to save. Simply enroll in Future Scholar, start making contributions, and monitor your plan online!