NOTE: This Article Has Been Replaced by a Revised Article Dated July 15, 2011. See the new article…
Wisconsin law provides a subtraction from income for up to $3,000 of the amount contributed to a college savings account (EdVest or "tomorrow's scholar") if the beneficiary of the account is the claimant, the claimant's child, grandchild, great-grandchild, niece, or nephew.
There is confusion as to whether, for example, a grandfather can claim the subtraction if he contributes funds to an EdVest account that is owned by another person, but the beneficiary of that account is his grandchild.
In this case, the grandfather may not claim the subtraction. The grandfather must be the owner of the EdVest account in order to qualify for the subtraction. The grandfather must open his own EdVest account with the grandchild as beneficiary and make the contribution to that account.
March 9, 2011