Personal Savings
The 529 College Savings Program
It’s never too early to start thinking about saving for college. A 529 college savings program is a tax-advantaged savings plan that enables you to invest for college free of federal and, sometimes, state income taxes.* You can use this investment to pay for tuition, room and board, books, supplies, and other qualified higher education expenses.
To learn more about the 529 College Savings Program, go to the New York State Higher Education Services Corporation (HESC) at www.hesc.com.
*Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.
The Hope Tuition Tax Credit
A family may claim a tax credit up to $1650 for each eligible dependent for up to two tax years subject to a phase-out at $110,000 of income for married taxpayers and $55,000 for single filers. The Hope credit is available only until each student’s first two years of postsecondary education are complete.
