MADISON, Wis. (Jan. 28, 2026) – As Wisconsin families start to think about their 2025 taxes, Edvest 529 – Wisconsin’s direct-sold college savings plan – is reminding them that tax time can be more than paperwork – it can be an opportunity. With a state income tax deduction for Wisconsin taxpayers, tax‑deferred growth, and tax‑free withdrawals for qualified expenses, Edvest 529 helps turn tax season into a chance to build long‑term savings for a child’s future education and career training expenses.
Taxpayers have until Wednesday, April 15, 2026, to contribute to an existing Edvest 529 account, or open and contribute to a new account, to be eligible for the 2025 state income tax deduction.
1. State Income Tax Deduction
Wisconsin taxpayers can deduct from their 2025 state income taxes up to $5,130 per beneficiary ($2,560 per beneficiary for married couples filing separate) on contributions made to an Edvest 529 account. The Wisconsin state income tax deduction is available to any Wisconsin taxpayer, not just the 529 plan account owner, making gift contributions a benefit for family members or friends.
Edvest 529 is happy to announce that the Wisconsin state income tax deduction for the 2026 tax year has been increased to $5,280 per beneficiary for single filers or married couples filing a joint return, and to $2,640 per beneficiary for married couples filing a separate return.
2. 100% Tax-Deferred Growth
All account earnings in an Edvest 529 account grow 100% tax-deferred at both the federal and state level, which means the payment of taxes on earnings is postponed until a later date. This results in account earnings being reinvested to help grow the account.
3. Tax-Free Withdrawals for Qualified Expenses
Additionally, earnings accrued in an Edvest 529 account can bewithdrawn from an account 100% tax-free at both the federal and state level when paying for qualified higher education expenses.
Gift Tax Benefits
Family, grandparents, and friends can also chip in toward a child’s future by taking advantage of helpful federal gift‑tax rules. For 2025 taxes, a person can give up to $19,000 to someone’s Edvest 529 account ($38,000 if they are married) without needing to file a gift‑tax form. If they want to give a larger amount all at once, they can “spread it out” for tax purposes by giving up to $95,000 (or $190,000 for couples) in a single year and treating it as if it were given evenly over five years. This can be an easy way to make a big impact now while also potentially reducing the size of their taxable estate later. To learn more about gift tax considerations pertaining to 529 plans, check out our video: Understanding Gift Tax & Legacy Planning.
Boost Savings with Your Tax Refund
If you find yourself receiving a tax refund this year, think about using a portion of it to start saving for a loved one’s higher education, or to boost your current savings with an extra or larger contribution. For parents, grandparents, and loved ones alike, saving with Edvest 529 can help turn today’s contributions into tomorrow’s opportunities—helping make future dreams feel a little more within reach.
About Edvest 529
For more than 25 years, Edvest 529 – Wisconsin’s only direct-sold 529 college savings plan – has been helping families save for higher education expenses. Account owners can choose from 25 investment portfolios, access easy-to-use savings tools, and take advantage of triple tax benefits, including a 2025 state income tax deduction on contributions made to an Edvest 529 account for Wisconsin taxpayers, up to $5,130 per beneficiary for single filers or married couples filing jointly, or up to $2,560 for married couples filing separately.
Edvest 529 has no sales charges, enrollment fees, or annual account maintenance fees. In fact, Edvest 529 is amongst the top 6% lowest-cost 529 college savings plans in the nation.1
Want more details?
Find additional information about Edvest 529, including investment options, fees, and frequently asked questions, at Edvest.com, or follow Edvest 529 on Facebook, Instagram, and YouTube.
