Oregon will require an addback for taxpayers who use funds withdrawn from a 529 savings network account to pay K-12 expenses. The change applies to tax years beginning on or after January 1, 2018.
Amount of 529 Account Addback
The addback will be the amount of:
- the withdrawal that is attributable to contributions that were subtracted from federal taxable income; and
- previously untaxed earnings and gains.
Federal Law Changes for 529 Funds
Federal law was recently changed to allow 529 funds to be used for public, private and religious elementary or secondary schools.
H.B. 4080, Laws 2018, effective on the 91st day following adjournment of the 2018 legislative session