I’d like to preface this article by saying that I know very little about taxes.

If you’re a college student, you (or your parents, if you don’t have any income) might be able to cash in for an awesome tax deduction. The trick is to take whatever money you’re about to pay your school, first put it in a 529 college savings account, and then pay your school directly from that 529 account. The money can be in the 529 for as little as a day – and you’ll still be eligible for the deduction.

The great news is that in many states you can put a lot, and sometimes even an infinite amount, in these accounts. This is legal as long as you use it for “college expenses.” In Virginia, for instance, it can be used for tuition, room and board, and textbooks. I assume this also works for grad school as well.

Just thought I’d share. Thanks to my girlfriend’s dad for giving me this tip. Also, if you’re a subscriber, check out the Wall Street Journal article about 529 college savings accounts.

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