Are gifts to 529 plans tax deductible
Each 529 plan defines qualified educational expenses for which you can make tax-free withdrawals from your cards account.
Commonly approved costs include tuition, discount books and room and board at eligible schools.
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After the fafsa is filed, roll over a years worth of funds gifts to a parent-owned 529 plan, and withdraw the funds from the parent-owned 529 plan before the next fafsa is filed.
Suppose you contributed 14,000 to the 529 plan and 5 years later the account had grown and was now worth 20,000.