* This calculator does not take federal gift tax exclusions into account.

  • This calculation is for hypothetical purposes only and relies on information you have provided. The information entered may vary from actual individual circumstances. The calculation relies on certain assumptions in addition to the information you provided and does not guarantee future performance of any investment option. John Hancock will not be liable for any damages arising from the use or misuse of this calculator or from any errors or omission in the same.
  • This calculator uses state tax rate tables. Current information is pulled from publicly available sources which are believed to be accurate. You may want to consult your state tax laws or your tax advisor for more specific information.
  • This calculator assumes that only one taxpayer uses a 529 savings plan for only one beneficiary and one account. No consideration is given as to whether additional accounts are established for the same beneficiary. Some states have set a maximum 529 savings plan account value and several people can each save up to the maximum value for the same beneficiary. Other states, however, have maximum values per beneficiary, and no matter how many accounts are set up, the aggregate account value for the beneficiary cannot exceed this limit. State contribution limits also vary and can change at any time. The contribution amount that a user may input is not limited by a state plan’s limit.
  • As tax laws and information change frequently, there is no guarantee made as to the full and total accuracy of this information. For more information about your state, and with consideration to your personal circumstances, consult your tax advisor. You can also contact your state’s official taxing authority.

Specialized Features of State Plans:

  • Calculations and limits apply only to 529 college savings plans. 529 prepaid tuition plans are not considered in the calculator. Some states offer matching grants for contributions made by eligible residents to that state’s 529 savings plan. Please note that this calculator does not consider these matches.
  • Some states permit contributions in excess of the allowable deduction to be deducted on future tax returns. This calculator estimates the tax benefit of these deductions in future years. Users should check with their tax advisor regarding the applicability of this issue to their situation.
  • Deduction limits are set to the standard state maximums and this calculator does not utilize exception values. For example, Virginia residents over age 70 may deduct more than the normal $4,000 limit; however, the calculator assumes that $4,000 is the limit for all Virginia residents.

State & Local Taxes:

  • Only a state’s tax brackets and marginal rates are used to determine tax liability. Some states use more factors in determining tax liability. Therefore, a taxpayer may pay less in taxes than the brackets and rates alone indicate. Since this calculator does not take into consideration these other factors, the calculator defines the maximum of the tax saving.
  • Only a state’s single and joint filing tax tables are used. All other filing statuses are not used. For states where income splitting is allowed and utilized, taxes could be lower.
  • Some states also levy local income taxes, such as New York. This calculator considers only state taxes.

Federal Taxes:

  • Federal tax deductions for state taxes only affect tax filers who itemize their federal deductions. A 529 deduction lowers state taxes. Since federal deductions for state taxes are lower, an individual’s federal taxes would be higher.
  • There is no consideration given to AMT issues.
  • This calculator assumes that there is no gift tax liability arisen from the contribution.

This material does not constitute tax, legal or accounting advice and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Comments on taxation are based on John Hancock's understanding of current tax law, which is subject to change. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.

Calculator illustrations are produced by Archimedes Systems, Inc.