The teacher pay commission has issued $300 million worth of recommendations to pay teachers more.
One of the recommendations includes restricting the tax credit for College Choice 529 to households earning less than $150,000 a year.
Dr. Matt Will, UIndy, talked to Tony Katz Tuesday morning about what the 529 plan is and how every Hoosier should take advantage of it.
“529 Plan is you put money in and your basically creating an opportunity to send your kid to college and you get a tax break for it.
You don’t get a tax deduction, you get a tax credit. If you’re a Hoosier and you put in $5,000 in a savings account for your child, you get to reduce your state taxes by $1,000-it’s a 20% tax credit. You just write it off.”
He notes that the plan isn’t just for college tuition, but can be used for any educational purposes.
Will says instead of limiting the plan to certain Hoosier households, we should look at how teachers get paid. Instead of every teacher getting an increase of $7,000, Will suggests we only give that raise to teachers who have earned it.
