Tax Time: Ins and Outs of Saving for Education

A recent series of articles on tax law changes for 2002 elicited many letters from readers with tax questions. To help answer your questions, below is the first installment of a regular column focusing on taxes.

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Question: I am a Florida resident serving in the military, so I pay no state taxes. If I signed up for the Rhode Island [529 college savings and prepaid tuition] plan, I'd have to pay Rhode Island state taxes on the money I pull out of it. States that have no state income taxes (Alaska, New Hampshire) offer me a much better deal. -- Kevin ...