529 contributions in Vermont
Varies
Are 529 Contributions Tax Deductible in Vermont?
Short answer: Yes on your Vermont return: 10% credit on first $2,500 per beneficiary per taxpayer ($5,000 joint; max $250 / $500). Only contributions to the state's own plan count. VT 529 only; gift contributions to others' accounts qualify; 10% of any nonqualified distribution must be repaid, up to credits received.
There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Records to keep: Keep receipts, statements, and a note of what each cost was for. Compare itemizing to the 2026 standard deduction ($16,100 single / $32,200 joint) before you claim.
529 contributions in Vermont
Varies
Individuals / Personal Taxes
Yes on your Vermont return: 10% credit on first $2,500 per beneficiary per taxpayer ($5,000 joint; max $250 / $500). Only contributions to the state's own plan count. VT 529 only; gift contributions to others' accounts qualify; 10% of any nonqualified distribution must be repaid, up to credits received.
Business justification
Yes on your Vermont return: 10% credit on first $2,500 per beneficiary per taxpayer ($5,000 joint; max $250 / $500). Only contributions to the state's own plan count. VT 529 only; gift contributions to others' accounts qualify; 10% of any nonqualified distribution must be repaid, up to credits received. There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Category
- Personal Tax Deductions