AB 2426, as introduced, Nestande. Income taxes: education savings accounts.
The Personal Income Tax Law excludes from gross income distributions from a Coverdell Education Savings Account, provided the distributions are used for qualified education expenses, as provided.
This bill would state the intent of the Legislature to increase the benefits related to the exclusion for distributions from an education savings accounts by allowing a deduction for contributions to an education savings account, as provided.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
It is the intent of the Legislature to enact
2legislation to increase the benefits of the current gross income
3exclusion for individual taxpayers for distributions from a
4Coverdell Education Savings Account, where the distributions are
5spent on qualified educational expenses at public and private
6schools, colleges, and universities that include tuition, fees, books,
7supplies, equipment, and room and board, by allowing an
8above-the-line deduction, not to exceed seven hundred fifty dollars
P2 1($750) per taxable year for each designated beneficiary, for
2contributions made to an education savings account.
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