Retroactive tax change in Kansas enacted April 4, 2024, allows 529 college savings plan contributions made by April 15, 2024, to be deducted on 2023 tax returns.

Kansas has enacted a new law that allows taxpayers to deduct contributions made to 529 college savings plans on their 2023 tax return, even if the contributions were made up until April 15, 2024.  This new rule also applies to contributions to qualified ABLE programs, and first-time home buyer savings accounts.

You now have a choice whether to deduct contributions to such accounts made in the current year up through April 15th to be deducted on either the current or previous year filing.  This aligns the deduction for these contributions with tax filing deadlines instead of the calendar year. This is similar to the IRS rule that allows IRA (individual retirement account) contributions and HSA (health savings account) contributions made through April 15 to be deducted on the prior year return.

For 529 college savings plans, up to $3,000, or $6,000 for a married couple filing a joint tax return, can be deducted for each designated beneficiary.  So, this retroactive change to the 2023 tax year means there is still time to make 529 contributions and deduct them on your 2023 Kansas tax return!