December typically offers colder temperatures, holiday decorating, holiday shopping, and looming year-end deadlines. While we can’t do much about those, we do want to make you aware of one deadline that has changed that might take a little pressure off.
A recent change to Iowa state income tax law makes it possible for Iowa residents to make tax-deductible contributions to a College Savings Iowa plan up to the Iowa tax filing deadline, which is typically April 30. This means you don’t have to make the contribution to College Savings Iowa by December 31st in order to get the tax deduction for that year, you just have to do it by the tax filing deadline the following April. See the link below for additional detail.
If you do send in a contribution after December 31 that you want to apply to the previous year, be sure to include a letter of instruction so the plan administrator (Vanguard) knows to apply it to 2015.
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