As a grandparent, can I open an education savings account for my grandson and take the tax credit/deduction?
Answer:
529 plans are usually a good idea and the investment earnings grow free of tax. Some states have credits/deductions for these plans but there are no credits or deductions on your federal return.
May you open the account for a grandchild? Yes. Is it a good idea? Usually. Is it a nice thing to do and does it help the child? Absolutely. Do you get a federal tax break other than tax free growth? Nope.
I think its good to think like that..unless ur grandson is very studious.
anyone can contribute to education savings account or 529
Yes you can- and good for you
Grandparents can open education savings accounts, but no one gets a deduction or credit on their federal taxes for contributions to these accounts. The advantage is that no one has to pay tax on the earnings in the account.
There are some states that give tax breaks for contributions. You'd have to look at the law of your state to determine if you qualify.
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