tax flat income

(The Center Square) — State income tax deductions that can save Delawareans thousands are a reality for contributions made since Dec. 31.

House Bill 145, signed by Democratic Gov. John Carney, creates the deductions for amounts up to $5,000 in DEPENDABLE accounts, and up to $1,000 in DE529 Education Savings Plan accounts. Joint filing amounts, respectively, are $10,000 and $2,000.

DEPENDABLE plays into an acronym for the state abbreviation and its ABLE program, which is Achieving a Better Life Experience. It is for individuals with disabilities and their families and allows for a broad range of expenses. The DE529 applies to education as the full name suggests.

In a release, state Treasurer Colleen Davis said, "Creating pathways to economic empowerment remains one of my top priorities for our office. There’s no better way to create that safeguard than by saving, be it for education or the future needs of a person with a disability."

She added, in reference to the ABLE program and DEPENDABLE accounts, "There’s no limit to what people with disabilities can do so there’s no reason to limit their savings. This new tax deduction will help them save even more."

The release says, "The deduction for contributions to DE529 Education Savings Plan accounts takes effect on January 1st of the calendar year following notification from the Delaware Secretary of Finance to the Register of Regulations of the availability of the funds."

In the release, Rep. Krista Griffith — a sponsor of the bill — said of DE529, "If a parent contributes just $1,000 a year to a 529 account beginning the year the child is born, the account could grow to $44,000 by the time the child turns 18."

Managing Editor

Alan Wooten has been a publisher, general manager and editor. His work has won national or state awards in every decade since the 1980s. He’s a proud graduate of Elon University and Farmville Central High in North Carolina.