TREASURER MIKE FRERICHS’ OFFICE IS WARNING FAMILIES WITH 529 COLLEGE SAVINGS ACCOUNTS THAT FEDERAL TAX BREAKS DO NOT APPLY TO ILLINOIS TAXES IN CERTAIN SITUATIONS.
THE FEDERAL TAX REFORMS NOW LETs FAMILIES WITH ACCOUNTS LIKE BRIGHT START AND BRIGHT DIRECTIONS USE THAT MONEY FOR “K” THROUGH 12 PRIVATE SCHOOL EXPENSES, INSTEAD OF JUST FOR COLLEGE. BUT TREASURER FRERICHS SAYS PARENTS GOING THAT ROUTE AREN’T ELIGIBLE FOR A STATE TAX BREAK.
FRERICHS SAYS LAWMAKERS WOULD HAVE TO CHANGE STATE LAW FOR PARENTS TO GET A STATE TAX DEDUCTION.
FRERICHS SAYS FAMILIES THAT DO TRY TO CLAIM A CREDIT ON THEIR STATE TAXES RISK PENALTIES IF AN AUDITOR CATCHES THE MISTAKE.
