Indiana Education Credit and Special Midwest Disaster Relief Spell Financial Relief for Hoosiers

A 20% tax credit on up to $ 5,000 per year in contribu- tions, including rollovers (2009), to the Indiana 529 plan can be claimed against Indiana income tax (maximum yearly credit is $ 1,000 ). Effective January 1, 2010, rollover contributions and contributions generated through a rewards program are not eligi- ble for the credit. Accounts closed within 12 months from account opening date are subject to credit recapture.

The maximum Hope credit is doubled to $ 3,600 and the maximum lifetime learning credit to $ 4,000 for student attending institutions in the Midwestern disaster area. These favorable law changes apply to both 2008 and 2009. Qualified education expenses include: Tuition and fees, books, supplies, equipment, room and board.

Students resident at the follow- ing partial list qualify: Taylor University, Upland; Huntington College; Anderson University; Indiana State Univer- sity, Terre Haute; Indiana Uni- versity, Bloomington; and Pur- due, West Lafayette, and many more.