Amends GS 105-153.5(b), concerning deductions from taxable income by taxpayers, creating a new deduction and allowing taxpayers to deduct up to $2,500 when contributed to an account in the Parental Savings Trust Fund of the State Education Assistance Authority. Further provides that for married couples filing jointly, the permissible deduction is up to $5,000. Requires amounts withdrawn from the fund to be added to taxable income if it was not spent on qualified higher education expenses for the designated beneficiary, unless permitted as specified.
Effective for taxable years beginning on or after January 1, 2016.
Bill S 745 (2015-2016)Summary date: Apr 25 2016 - View summary