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Annual Taxable Income :

Your Annual Taxable Income is calculated as follows:

    Total Annual Income
  - (standard or itemized deductions)
  - (personal exemptions)
-------------------------------------------------------
  = Annual Taxable Income

Your taxable income figure is used to calculate your tax benefit. It includes your total annual income, which consists of incomes such as salaries, wages, pension payments, dividends and interest, less your deductions & personal exemptions. The State Tax Benefit Calculator assumes that state and federal tax treatments are similar for most sources of income and types of deductions and that federal taxable income is a proxy for state taxable income.

Amount of Annual Contribution :

This is the amount of money that you plan to contribute this year to your state’s 529 savings plan. It is assumed that one account is opened for one beneficiary only. The tax rates used are the most current rates provided. The information for the tax rates was last updated as of January 2006.