Dear Liz: The state where I live, Oregon, has removed the tax deduction for 529 college savings accounts. This was quite disturbing to discover upon getting my taxes done this year. Other than the obvious savings benefit, are these accounts still worth having? Fortunately our son is almost done with college, so it won’t affect us much, but I am thinking of my two granddaughters.

Answer: Although there’s no federal tax deduction for 529 contributions, most states offer some kind of tax break or other incentive to contribute to their college savings plans. Oregon now offers a tax credit capped at $150 for single filers or $300 for married couples that doesn’t benefit higher earners as much as the previous deduction.

(Some states have no income tax and thus no deductions for 529s, while a few — California, Delaware, Hawaii, Kentucky, Maine, New Jersey and North Carolina — have a state income tax but no 529 tax break.)

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