529 College Savings Plans
If you have kids, this is probably one of the most useful ways to save extra money. Right now, Section 529 lets you raise money in an educational investment plan that allows your cash to grow tax-free. Also, if you’re married and have more than one child, you and your spouse can actually make separate contributions for every child. You may not feel the difference right away, but in time, their eventual earnings will add up.
If you and your spouse deposit $4,000 into this plan for your child to attend college. This fact alone earns you a tax credit of $8,000 on your joint state return.
