Expecting Tax Breaks

Physician's Money Digest, November30 2003, Volume 10, Issue 22

At the same time you celebrate thebirth of a new baby, you can also toastthe $3050 tax exemption that you canclaim on this year's income tax return—even if the new addition doesn't get hereuntil December 31. Don't break out theexpensive champagne, though, becauseit's also time to start saving for baby'scollege fund. Check out 529 college savingsplans and start funding them rightaway. You can put in up to $11,000 eachyear without triggering the gift tax, andyour spouse can do the same, for a totalof $22,000 a year. For more about 529plans, visit www.savingforcollege.com orwww.collegesavings.org.