529 deduction: YesTax parity: No — DC's plan only
In-state plan only
Most states that offer a 529 tax break tie it to their own plan, and the District of Columbia is one of them: the deduction applies only to contributions to the DC College Savings Plan, not to other states' 529 plans. If you're a DC taxpayer eyeing an out-of-state plan for its investment lineup or fees, weigh that choice against the tax break you'd be giving up.
The deduction
The District allows a deduction of up to $4,000 per year for an individual, or up to $8,000 for married couples or registered domestic partners filing jointly who each own a separate account. The deduction goes to the account owner for contributions to their own DC College Savings Plan account, and contributions above the annual limit carry forward for up to five years. One caution: take a non-qualified withdrawal, or roll the account into another state's 529 within two years, and the deduction is recaptured — added back to your District income. Confirm the current rules with the DC College Savings Plan before filing.
How it fits with the gift-tax rules
A 529 contribution is also a gift for federal purposes, so it counts toward the $19,000 annual exclusion (2026). The 5-year election ("superfunding") lets you front-load up to $95,000 per donor per child without using any lifetime exemption.
See how much you can front-load with the 529 Superfunding Calculator, and keep family contributions within the exclusion with the Gift Tax Calculator.
529 deductions & credits in other states
Tax-parity states let you deduct contributions to any state's 529 plan; the rest limit the benefit to their own plan.
Tax parity: Arizona · Arkansas · Kansas · Maine · Minnesota · Missouri · Montana · Ohio · Pennsylvania
Own-plan deduction or credit: New York · New Jersey · Connecticut · Massachusetts · Rhode Island · Vermont · Illinois · Indiana · Michigan · Wisconsin · Iowa · North Dakota · Virginia · Maryland · West Virginia · Georgia · South Carolina · Colorado · New Mexico · Utah · Idaho · Oregon · Oklahoma · Alabama · Mississippi · Louisiana · Nebraska
General information, not tax advice. 529 deduction rules and limits change yearly and this page may not reflect the latest figure — confirm with the DC College Savings Plan and your CPA. The District's deduction applies to the DC College Savings Plan as of recent guidance.
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