Tax Advantages of Prepaid Tuition Plans

Virginia taxpayers may deduct up to $2,000 per year for each prepaid tuition plan or savings account entered into with The Virginia College Savings Plan (formerly the Virginia Higher Educational Tuition Trust Fund). Payments in excess of $2,000 may be carried forward to future years until the total purchase price has been fully deducted. Taxpayers age 70 and older may deduct the entire amount paid during the year.