529 deduction: YesTax parity: No — Nebraska's plans only
In-state plan only
Most states that offer a 529 tax break only give it for their own in-state plan, and Nebraska follows that rule: the deduction covers contributions to Nebraska's own program — the NEST Direct, NEST Advisor, Bloomwell, and State Farm 529 plans. Contributions to another state's plan get no Nebraska tax break, though funds rolled into a NEST account from an out-of-state plan are deduction-eligible. If the deduction matters to you, that tilts the choice toward the in-state plans; if another state's plan wins decisively on fees or investment options, weigh that against the deduction you'd give up.
The deduction
Account owners can deduct up to $10,000 per year ($5,000 if married filing separately) for contributions to their own NEST accounts. The cap is an overall maximum per return across all accounts — not per beneficiary — and contributions above it can't be carried over to a future year. The deduction belongs to the account owner: for a minor-owned or UGMA/UTMA account, the minor is treated as the owner, though contributions by the parent or guardian listed as custodian are also eligible. Nonqualified withdrawals (including some K-12 uses) can trigger recapture of previously claimed deductions. Limits change yearly — confirm the current figure with the Nebraska plan.
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 · District of Columbia · West Virginia · Georgia · South Carolina · Colorado · New Mexico · Utah · Idaho · Oregon · Oklahoma · Alabama · Mississippi · Louisiana
General information, not tax advice. 529 deduction rules and limits change yearly and this page may not reflect the latest figure — confirm with the Nebraska plan and your CPA. Nebraska's deduction is limited to the state's own 529 plans as of recent guidance.
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