DMA Financial Management LLC

National 529 Day – Did You Know?

If you put money into a 529 education savings plan, earnings may be withdrawn federal income tax-free when used for qualified education expenses. Qualified expenses can include tuition, fees, books, supplies, computers, and for students enrolled at least half-time, certain room and board costs.

While 529 contributions are not deductible for federal income tax purposes, many states offer a full or partial state income tax deduction or credit for contributions. Some states and plan sponsors may also offer special incentives around National 529 Day.

Recent law changes expanded the use of 529 plans. In 2026, up to $20,000 per year, per student, may be used for qualified K–12 education expenses at public, private, or religious schools. Prior years were generally limited to $10,000 annually.

Qualifying Dependents – Did You Know?

In addition to your children and parents, a number of other individuals may qualify as your dependents for tax purposes. Important factors can include the person's income, how much support you provide, and how much of the year the person lives with you. In some limited cases, even a non-relative who lives with you year round as a member of your household may qualify as a dependent.

IRS Impersonation Scams – Did You Know?

Criminals continue to use IRS impersonation scams to steal money and personal information. Understanding how the IRS actually communicates can help you recognize and avoid these schemes.

The IRS generally initiates contact by sending a letter through the mail on official letterhead. If you have an IRS online account, you can log in to verify whether a notice is legitimate. If you are unsure, you can contact the IRS directly at 800-829-1040.

Scammers, however, often pose as the IRS in several ways:

By mail: Fake letters may look official but include incorrect contact details or suspicious language such as “in relation to your unclaimed refund.”

By email or text: The IRS does not initiate contact this way. Messages promising refunds, credits or urgent fixes often contain links to fraudulent websites designed to steal your information.

By phone: Scammers may leave threatening messages or demand immediate payment using gift cards or other unusual methods—tactics the IRS does not use.

In person: Unannounced visits are extremely rare. Most legitimate IRS appointments are scheduled in advance by letter.

If you suspect a scam, do not respond, click links or share information. Instead, contact the IRS using an official phone number to verify the situation.