College Savings? CHET Deposits By Dec. 31, 2013 Give Back with Tax Deductions

With the holiday season upon us and only a few weeks remaining for contributions to qualify for a state income tax deduction, State Treasurer Denise L. Nappier urges Connecticut residents to consider a gift of a CHET savings account for a child they care about.

“Many consumers are seeking gifts that are more meaningful than this year’s hottest toy. A CHET contribution will long be remembered, and with rising higher education costs will provide relief when it comes time to start college.  It’s both an opportunity to help our young people realize their dreams, and a chance to pay less in taxes,” said Treasurer Nappier, Trustee of CHET in a release.

A new feature this year that is ideal for gifts is e-gifting. CHET account holders can simply log-in to their account atwww.aboutchet.com to create and send invitations to family and friends, who can then easily send a gift contribution to their niece, nephew, grandchild or special friend.  Then, gift givers can create a customized Gift of Education certificate that they can print and wrap, frame or insert in a card.

In 2013, more than 600 CHET e-gift contributions have been made, totaling more than $455,000 through October.

If a family member doesn’t have a CHET account, grandparents and other close relatives can visit www.aboutchet.com to open an account.

Another suggestion is to pair a donation to a CHET account with a toy that reflects a child’s interest, such as a chemistry set, doctor’s kit or artist’s palette.  “Such a gift will inspire and excite young students to think about their future career dreams and goals and understand the importance education plays in attaining those goals,” Treasurer Nappier said in the release.

The benefits of a CHET contribution can extend to both the giver and the receiver.  

Connecticut taxpayers who contribute to a CHET account can take a state income tax deduction of up to $5,000 for single filers and up to $10,000 for joint filers.  The deadline to make deductible contributions for the 2013 tax year is December 31.

CHET, the Connecticut Higher Education Trust, is a state-sponsored tax-advantaged 529 college savings plan.  The CHET direct-sold 529 college savings plan was established in 1997 and as of October 31, 2013 has grown to more than $2 billion in assets and more than 89,000 accounts.

CHET’s website, www.aboutchet.com, provides comprehensive account and program information, and includes online enrollment and other services.  Information and applications can also be obtained by calling 1-888-799-CHET (2438).