VHEIP tax credit
Starting with the 2007 tax year, VHEIP participants will be able to receive a Vermont income tax credit of 10 percent of the first $2,500 per taxpayer contributed to an account, or up to $250 each year per taxpayer per beneficiary.
Unlike a tax deduction, which reduces your taxable income, a tax credit reduces the amount you owe in taxes.
A deduction generally favors taxpayers who can afford sizable contributions to an account and who itemize on their tax returns. A credit is available to everyone, including those who do not itemize, and does not favor large contributors.
The credit is nonrefundable, meaning it is only available to those with a tax liability.
The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. It was written to support the promotion of the Vermont Higher Education Investment Plan. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
Consider the investment objectives, risks, charges and expenses before investing in the Vermont Higher Education Investment Plan. For details on the Managed Allocation Option, 100% Equity Option, and the Interest Income Option, refer to the Disclosure Booklet (PDF). Read the information carefully.
Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.
TIAA-CREF Individual & Institutional Services, LLC member NASD and SIPC distribute securities products.
The State of Vermont, VSAC, TFI, Teachers Insurance and Annuity Association of America and its affiliates do not insure any Account or guarantee its principal or investment return. Account value will fluctuate based upon a number of factors, including general financial market conditions.
