State of Alabama offering tax deductions

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DOTHAN, Ala. (WDHN) — The State of Alabama has a college savings program called CollegeCounts 529.

The program is designed to help with the rising costs of college and has over 30 different options available.

“That program is really going well,” Alabama Treasurer John Mcmillan said. “We’ve got about 95,000 accounts now and almost $2 billion invested. So, it’s really coming along well and is a great investment opportunity for folks with young children.”

The program also offers some tax benefits for investing.

Alabama taxpayers can get an income tax deduction of up to $10,000 for married couples and $5,000 for individuals.

“That’s a very good incentive because when you’re a single parent, you stress over how you’re going to send your children to college, and when you have this program, it really does help a lot because you know the money’s there,” Dothan resident Libby Sanchez said.

The tax deduction deadline for this year is December 31st.

The program applies to K-12, but also extends beyond that to anyone who wants to use the program. Additionally, anyone who contributes to an account will receive the tax deduction.

There are also scholarship opportunities.

“One of the things that we’ve been able to do is to offer scholarships,” McMillan said. “Two in each county, and we actually have some counties where we do not have applicants, a few counties in the state. So, people that are interested in that might want to talk to the folks at the office about the application process.”

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