Saving for School: How Arizona Could Help Families Save for Their Children’s K-12 and College Educations
In 2007, Arizona created a new tax deduction for taxpayers who help students save for college. Parents and taxpayers should question why the benefits of the 529 college savings plan are only available to families who save for their children’s postsecondary education. Many families and students would benefit from the opportunity to save for their children’s K-12 education. To address this need, Arizona could become the first state in the nation to offer tax deductions or credits for contributions made to Coverdell Education Savings Accounts that provide tax-free savings for K-12 and higher education costs.