It’s time for Amazon Prime Day — one of the best times of the year to save money on everything from headphones to household staples. Whether you are gearing up to save some cash on Prime Day purchases or looking for deals on any of the other days of the year, here are ways you may be able to save money on your next Amazon “add to cart” moment.
Related: These are the best credit cards for shopping at Amazon
Use points
You might have noticed the “Shop with Points” option when you check out. This is not always the best use of your credit card points from a monetary value perspective, as you can often get better value from your points when redeeming for travel.
But sometimes, there are promotions that award you money off your Amazon order for using a small number of points.
Currently, there is an offer for some Amazon accounts that will save 50% on Amazon orders using as little as 1 Amex Membership Rewards point. These offers can vary, but the concept remains relatively the same. This can be a great way to save on your next Amazon order if one of these offers is available for your account.
You can check these links for some of the latest Amazon points-related offers:
Here’s another offer for American Express cardholders. If you add a new Amex card, you can get up to $15 off so long as you use your American Express card at checkout. Click on this link to see if you are eligible.
New to TPG? Read our ‘Getting started with points, miles and credit cards’ guide
Earn bonus points with the right credit card
If you have an American Express card, you can take advantage of targeted Amex Offers. These offers vary from account to account and can be a great way to rack up bonus Membership Rewards points or save money on purchases you would make anyway.
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Amazon periodically appears in Amex Offers. For example, you may be able to earn 5 points per dollar on your Amazon purchases with current Amex Offers.
The trick here is to check your Amex account frequently to see if you’re eligible to earn bonus points or additional savings. You need to manually add these offers to your Amex account and then use that card to pay for your Amazon orders.
TPG values Amex Membership Rewards points at 2 cents each, so getting 5 per dollar spent at Amazon is like earning 10 cents in rewards per dollar spent. To start accessing these Amex Offers, a couple of good American Express cards to consider that don’t even come with annual fees are:
Use an Amazon credit card
While we’re on the subject of the best credit cards for Amazon purchases, let’s talk about Amazon’s own card — the Amazon Prime Rewards Visa Signature Card.
The information for the Prime Visa card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
It doesn’t have an annual fee, and new cardholders will receive a $200 Amazon gift card immediately upon approval. You can use the gift card straight away for Prime Day purchases. The card is only available to Prime members, so factor that in when deciding if it is the right match for you.
Read our full review of the Amazon Prime Rewards Visa Signature Card.
The card usually awards 3% cash back at Amazon and Whole Foods Market, as well as 2% cash back at restaurants and gas stations and 1% cash back on everything else. However, you’ll earn 6% back at Amazon and Whole Foods Market on July 11-12.
Related: Is the Amazon Prime Rewards credit card still worth the cost?
Use coupons
This tip won’t come as much of a surprise, but if you see a coupon available on Amazon, be sure to click on it. With coupons, you can save money with the literal click of a button.
You’ll know if there’s a coupon available for your item, as there will be an icon that says “Coupon” below the price. The coupon will be activated if you check the box next to it. Coupons are sometimes only for a few cents or dollars, but saving money is saving money.
Some items will also let you save by subscribing for repeat deliveries.
Track prices and set price alerts
It’s hard to know just how good a sale is if you haven’t been pricing a certain item for a while. One site that can tell you the historical price of an item on Amazon — and even alert you to price drops — is CamelCamelCamel.
This will help you gauge just how good a sale is. If it’s not an urgent purchase, you can also use this site to help you decide whether or not to hold off until your item is potentially on sale for a better price if you see it’s been lower in the past.
Related: These credit cards come with welcome bonuses worth $1,000 or more
Get credit for no-rush shipping or pickup
If you have time to spare, you can opt for no-rush shipping on your items and cluster them for an “Amazon Day Delivery.” This way, you’ll earn a credit that you can use for future purchases such as select e-books, digital music, videos and apps. The amount of the credit varies, but it has often been a couple of dollars in my tests.
You’ll find this option during checkout when you’re prompted to enter your shipping information.
There is also sometimes a promotion if you pick up the order at an Amazon pickup point. Right now, my account has an offer where I’ll get a $10 credit on a future $20 Amazon order if I use the code 10TRYPICKUP and retrieve my order at an Amazon Hub, such as an Amazon Locker or Locker+.
Sign up for a free Amazon Prime trial
You also might be able to sign up for a free, 30-day trial of Amazon Prime. This is a great free way to try out the service if you haven’t already. You’ll be able to receive free, two-day shipping on eligible items, as well as get access to Prime Video, etc. After that, the plan increases to $14.99 a month if you don’t cancel.
Purchase Amazon gift cards
If you don’t have any points or cash-back bonuses for Amazon purchases on one of your credit cards, you can also purchase Amazon gift cards at grocery stores with a credit card that gives bonus rewards at that type of retailer.
For example, if you pick up a $100 Amazon gift card at the grocery store and pay for that purchase with the Blue Cash Preferred® Card from American Express, you can earn 6% cash back on that purchase at U.S. supermarkets (on up to $6,000 per year in purchases).
Get bonus credit for your Amazon reload
Valid through Monday, you may be able to get a $5 Amazon promotional credit with a $50 reload to your Amazon account balance. This is an easy way to prepare for Prime Day with a $5 bonus credit in your account.
You’re about to buy a flight and you have a credit card with that airline’s name stamped on the front. That’s the best card to use for this purchase, right? Or would you be better served if you used some other credit card?
You have options for earning extra points and miles when you pay. Conversely, there are options for enjoying additional perks during your flight. And some credit cards can give a mix of both.
Let’s take a look at the best credit card to use for United flights so you can see your options.
Comparing credit cards for United Airlines flights
Aside from using a United Airlines credit card, you could also pay using an all-around travel rewards card that earns transferable points on travel purchases, including your next flight reservation with United Airlines. Here are some cards you might pay with and what you could get when using these cards:
Card name
Earning rate on United flights
Value of the rewards earned*
United-related benefits from the card
Annual fee
United Club Infinite Card
4 miles per dollar
4.4 cents
Visit lounges regardless of what cabin you’re flying in (but you must be on a same-day flight with United or a partner)
Premier Access with check-in, security, boarding and checked baggage delivery wherever these services are available
First and second checked bags free for you and a traveling companion (but you must pay for the flights with this card to receive the benefit)
25% back on inflight purchases and premium drink purchases in the United Club
10% discount on saver award redemptions for economy seats on United and United Express flights in the continental U.S. or between the continental U.S. and Canada
500 Premier qualifying points (PQPs) for each $12,000 spent on the card (up to 8,000 PQPs in total; only valid up to Premier 1K)
$525
United Quest Card
3 miles per dollar
3.3 cents
Up to $125 in statement credits to reimburse United purchases each cardmember year
5,000 miles back in your United MileagePlus account (starting after the first cardmember anniversary) if you make an award reservation with United or United Express — available up to two times each account anniversary year
First and second checked bags free for you and a traveling companion (but you must pay for the flights with this card to receive the benefit)
25% back on inflight purchases and premium drink purchases in the United Club
500 PQPs for each $12,000 spent on the card (up to 6,000 PQPs in total; only valid up to Premier 1K)
$250
United Explorer Card
2 miles per dollar
2.2 cents
Two one-time passes to the United Club each cardmember year
First checked bag free for you and a traveling companion (but you must pay for the flights with this card to receive the benefit)
25% back on inflight purchases and premium drink purchases in the United Club
500 PQPs for each $12,000 spent on the card (up to 1,000 PQPs in total; only valid up to Premier 1K)
$0 introductory annual fee, then $95
United Gateway Card
2 miles per dollar
2.2 cents
25% back on inflight purchases and premium drink purchases in the United Club
$0
The Platinum Card® from American Express
5 points per dollar (on up to $500,000 on these purchases per calendar year)
10 cents
None, but you can choose United as your preferred airline to cover up to $200 per year in airline incidental credits for things like checked baggage or preferred seat fees (enrollment is required)
$695 (see rates and fees)
Chase Sapphire Reserve
3 points per dollar (or 5 points per dollar if booked via the Chase travel portal)
6 cents (or 10 cents)
None
$550
American Express® Green Card
3 points per dollar
6 cents
None
$150 (see rates and fees)
Citi Premier® Card
3 points per dollar
5.4 cents
None
$95 (see rates and fees)
Capital One Venture X Rewards Credit Card
2 miles per dollar (or 5 miles per dollar if booked in the Capital One Travel portal)
3.7 cents (or 9.25 cents)
None
$395 (see rates and fees)
* Bonus value is an estimated value calculated by TPG and not the card issuer.
Which card should you use for United Airlines flights?
Typically, earning transferable points (which you can use in many ways, not just with United) is probably your best approach. And if you use a card that earns Ultimate Rewards points — such as the Chase Sapphire Reserve or the Chase Sapphire Preferred Card — you would be able to transfer these points to United Airlines later on if you want to make a redemption through the MileagePlus program.
But what if you need to check a bag? Do you get free checked luggage in some other way, due to flying in a premium cabin or having status with United? If not, paying with a United card might make sense.
Unlike holding a Delta Air Lines credit card — where the checked baggage benefit is attached to your loyalty program number — you must pay for your United flight with your United credit card to use the free checked baggage benefit. Simply having the United Club Infinite card or United Explorer card in your wallet doesn’t confer this benefit.
There are other benefits that require paying with your United credit card. These include earning bonus PQPs through credit card spending, receiving 25% back (as a statement credit) for inflight purchases with United Airlines and getting up to $125 in statement credits each year for United purchases made with the Quest card.
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Related: United Airlines baggage fees and how to avoid paying them
A credit card that has annual travel credits can also help to offset your checked bag fees. If you don’t need to check a suitcase, consider whether you’re losing out on other benefits. Have you used your Quest card’s $125 in United credits so far this year, for example? If you aren’t losing out on benefits like this, aim for the card that will give you the best return on your spending through miles and points.
If you choose to pay with your Amex Platinum Card to earn 5 Membership Rewards points for each dollar, you’ll earn more value (in terms of rewards) on the money you spend but won’t get free checked bags — even if you have a United credit card in your wallet.
Related: The ultimate guide to earning elite status with United cards
Some benefits exist regardless of which credit card you actually use to pay for your flights. These include eligible visits to the United Club lounges, priority boarding and priority check-in benefits, getting 5,000 miles back in your account if you make an eligible mileage award redemption while holding the Quest card, and gaining access to saver award bookings with a 10% discount thanks to the Club Infinite card.
Related: United changes how it shows saver awards online — how to tell if flights are bookable with a partner
Another benefit available to all cardholders — and also available to those with United Airlines elite status — is access to additional award space when redeeming miles for United flights. Plus, those who both have elite status with United and have a United credit card can receive complimentary upgrades to first class when using miles for award flights. That can make holding a United credit card worthwhile even if you also receive numerous benefits as an elite member.
Related: The single reason I’d open a MileagePlus credit card as a United elite
Bottom line
TPG values United miles at 1.1 cents apiece. Even the best-earning option for United credit cards yields just 4.4 cents in value for each dollar spent on United purchases, yet more general travel rewards credit cards can earn at a higher rate. But, you need to pay with your United credit card to take advantage of certain benefits, such as free checked bags and statement credits toward eligible purchases.
Related: The best credit cards for paying taxes and fees on award tickets
Evaluate whether you would be sacrificing benefits to earn more valuable rewards and how important this is to you. Earning fewer points but keeping more cash in your pocket will make sense for most people. For those who don’t need to check a bag, you’re probably free to use whichever credit card has the best earnings on your next United purchase.
And whenever the planned Star Alliance credit card is released, we’ll see if that changes any of these considerations.
Editor’s note: “Points of View” is a series evaluating decisions on which credit card to use. If you’re facing a dilemma about which card is best for an upcoming payment, email us at [email protected].
Also in this series:
For rates and fees of the Amex Platinum card, click here. For rates and fees of the Amex Green card, click here.
Editor’s note: This is a recurring post, regularly updated with new information and offers.
One of the best perks of the Marriott Bonvoy family of credit cards is the complimentary elite night credits you receive each year — ranging from 15 to 25 nights, depending on which card you have. For many years, this perk was limited to one set of credits per Bonvoy account, no matter how many credit cards you had. That changed in 2020, with Marriott enabling its members to earn up to 30 nights with both a small-business and a personal card.
In September 2022, this perk gained even more value, as cardholders can now earn up to 40 elite night credits annually through credit cards. That’s quite the head start for elite status each year.
If you’re still trying to figure out how best to take advantage of this policy, you’re not alone. Today we’ll review all the reasons why you can get more value out of having both a personal and small-business Marriott card.
Get 80% of the way to Platinum status and choice benefits
Since you can stack elite night credits, it’s definitely worthwhile to hold both a personal and business Marriott card if you’re eligible. Most Marriott credit card comes with 15 elite nights annually – including the no-annual-fee Marriott Bonvoy Bold Credit Card. However, the Marriott Bonvoy Brilliant® American Express® Card offers 25 elite night credits per year.
You may be wondering why this is relevant when several of the Marriott cards, along with The Platinum Card® from American Express, also offer Gold Elite status or the ability to earn higher status based on spending (enrollment is required). The big difference is that this automatic status doesn’t grant you the corresponding number of elite nights — so you still need to reach the normal qualification thresholds if you want to enjoy the program’s Choice Benefits or hit even higher tiers of status.
Related: The complete guide to earning Marriott elite status with credit cards
If you frequently stay at Marriott properties, you can stack these 15-25 elite night credits on top of your own travel to upgrade to the next elite tier faster.
When you stack credits between a personal and business card — like the Marriott Bonvoy Boundless Credit Card and the Marriott Bonvoy Business® American Express® Card — you’ll have 30 elite night credits at the beginning of each year. Reaching Platinum Elite status requires 50 nights per year, meaning you’re 60% of the way there already. You would need to stay just 20 additional nights (or earn the nights through credit card spending on the Boundless card) to reach the next tier.
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And once you’ve reached Platinum Elite status, the benefits can be incredibly valuable — including things like free breakfast and suite upgrades.
Related: Why I prefer Marriott Bonvoy premium cards
For those with the Amex Marriott Bonvoy Brilliant card, you now receive complimentary Platinum Elite status each year as a perk of the card. This will entitle you to benefits like room upgrades and free breakfast. However, you will not have the necessary credits (50 nights) to earn the annual choice benefit associated with Platinum status. This benefit allows you to choose from one of the following:
That said, the 25 elite night credits you earn on the Bonvoy Brilliant can be stacked with the 15 elite nights offered by the Bonvoy Business card, allowing cardholders to start each year with 40 elite night credits — like TPG director of content Nick Ewen, who hadn’t set foot in a Marriott property in 2023 when this screen shot was taken.
That’s 80% of what you need to earn your first Choice Benefit selection (at 50 nights). It’s also more than halfway to the 75 nights required for Titanium Elite status. Reaching Titanium unlocks another Choice Benefit along with added perks like the ability to be upgraded to standard suites at Ritz-Carlton properties.
Annual award nights
But why stop at two Marriott cards?
There are many reasons to have as many Marriott credit cards as you can get your hands on. This is because of the incredible value you can get out of the anniversary award night certificates. Both the Bonvoy Boundless and Bonvoy Business cards offer an anniversary reward night worth up to 35,000 points. However, the premium Marriott Bonvoy Brilliant® American Express® Card — with its $650 annual fee (see rates and fees) — now offers an annual award night worth up to 85,000 points per night.
TPG values Marriott points at 0.84 cents each, meaning 35,000 points are worth $294 — nearly triple the annual fee on those cards.
Still, depending on how you travel, you might be able to get an even higher return on these award nights. I’ve used mine at the Sheraton Grand Hyde Park in Sydney, where we were upgraded to a massive terrace suite during peak travel season, and at The St. Regis Beijing for a room that would have cost well over $300 per night.
With Marriott’s move to dynamic pricing, the ability to use these awards is less predictable than in the past. However, it’s still possible to redeem these awards for more than the cost of your credit card’s annual fee, meaning this one benefit alone can justify keeping your Marriott credit cards year after year.
Related: Ouch: It’s not just you, Marriott stays now cost more points
There are two exceptions here. The Marriott Bonvoy Bevy™ American Express® Card and Marriott Bonvoy Bountiful Card from Chase do not offer free night awards automatically each year. On both cards, you need to make $15,000 in purchases each year, then you will receive a free night award worth up to 50,000 points.
The information for the Marriott Bonvoy Bountiful Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Category bonuses
Aside from annual award nights and elite night credits, having a personal and business Marriott card can help you earn more points across several spending categories. All four Marriott cards earn 2 points per dollar on everyday spending and 6 points per dollar at hotels participating in the Marriott Bonvoy program (with the exception of the no-annual-fee Bonvoy Bold; see details below).
Related: Which Marriott Bonvoy credit card is right for you?
But it’s the extra bonus categories, most of which do not overlap, that can help you maximize your earnings:
So, if you’re a big Marriott fan and want to focus your earning strategy solely on Bonvoy points, you can have multiple cards and enjoy earning rates across several categories.
Related: Are you eligible for a new Marriott Bonvoy card? This chart tells you yes or no
Bottom line
Marriott has made it much easier to qualify for elite status by allowing customers who hold both a personal and business credit card to earn two sets of elite night credits each year. In fact, many TPG staffers kicked off 2023 with 40 elite night credits. When you add this to the annual award night certificates on these credit cards, it’s practically a no-brainer to hold both a personal and business card in your wallet.
Related: Who qualifies for a business credit card?
Despite some ups and downs over the years, I’m still convinced that there’s plenty of value to be had in the Marriott Bonvoy program if you know where to look. For me, a big part of that value comes from the multiple Marriott credit cards I keep in my wallet.
Apply here: Marriott Bonvoy Bevy American Express Card Apply here: Marriott Bonvoy Bold Credit Card Apply here: Marriott Bonvoy Boundless Credit Card Apply here: Marriott Bonvoy Brilliant American Express Card Apply here: Marriott Bonvoy Business American Express Card
For rates and fees of the Marriott Bonvoy Brilliant Amex, please click here.
Additional reporting by Ryan Wilcox, Chris Dong, Christina Ly and Ryan Smith.
While a vast majority of U.S. hotels are attached to a big brand like Marriott or Hilton, that doesn’t mean boutique and independent hotels are losing their luster everywhere in the world.
Just look to Australia, where the boutique hotel business is booming — and the big brands are clearly trying to get a slice of the pie.
A Coldwell Banker Richard Ellis (CBRE Group, Inc.) report cited by Skift’s Daily Lodging Report notes boutique hotels in Australia overwhelmingly outperformed large, luxury hotels attached to international hotel conglomerates by a wide margin since the beginning of the pandemic in 2020. Australia’s boutique hotels commanded average daily rates that were 27% higher than the major brands, while occupancy rates were 21% higher.
Part of this stems from Australia’s lengthier, stricter travel restrictions that fueled more domestic travel even when other parts of the world began to reopen for cross-border travel. The strong base of leisure-minded Australians during the national lockdown favored more curated travel experiences, per the CBRE report.
It’s highly likely the return of business and international travel will balance the scales back toward the biggest brands. However, it’s clear the major brands see an opportunity in courting travelers who favor a boutique hotel during a vacation. This means you don’t necessarily have to sacrifice earning points and enjoying loyalty benefits when you book a boutique hotel stay.
That’s good news for travelers, as it means points hotels operating in the boutique space can end up saving you money by redeeming for awards nights instead of forking over the heftier nightly cash rates.
The big brands go boutique Down Under
Paris-based Accor made moves earlier this year to further its boutique-style hotel offerings by including two Australian properties in the launch of the Handwritten Collection. This is a mid-priced collection of boutique hotels still affiliated with Accor and its Accor Live Limitless loyalty program.
Wonil Hotel Perth was the first Handwritten Collection hotel to open in Australia, and the Hotel Morris in Sydney quickly followed. Another Accor collection brand of boutique hotels, the upscale MGallery Collection, also has properties in Australia.
It’s not just Accor getting into the boutique business, either.
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Marriott Bonvoy members have options via Marriott’s Autograph Collection and Luxury Collection of hotels. Hilton’s Curio Collection also has a presence in Sydney.
Redeeming Accor Live Limitless, Marriott Bonvoy or Hilton Honors points can save the day in making your next boutique hotel stay Down Under all the more affordable.
For comparison’s sake, weekend nights later this month at Pier One Sydney Harbour — part of Marriott’s Autograph Collection — go for roughly 40,000 Marriott Bonvoy points per night or a cash rate that hovers around $400 per night.
Rooms at the West Hotel Sydney — part of Hilton’s Curio Collection — start at 46,000 Hilton Honors points per night or a cash rate starting at $224 per night.
It’s not just an Australian phenomenon: A Truist Securities report out Monday also noted the strength of U.S. independent hotels and soft brands, especially considering operating issues occurring at higher-end hotels coming out of the pandemic.
Gregory Miller, vice president of lodging and experiential leisure equity research at Truist Securities, explained it TPG via email:
“While some travelers understandably stay at branded hotels to earn or redeem their loyalty points and essentially ‘know what they are going to get’ when they book a stay at a globally recognizable hotel brand, there are plenty of reasons why independent and boutique hotels also have great appeal to travelers and can perform very well as Asia-Pacific travel rebounds. We are in a time when discretionary spend for experiential international travel is up materially as the world reopens and where independent and boutique hotels can be really desirable for vacationers.”
Why do guests and companies like soft brands?
Whether it’s Accor’s MGallery and Handwritten Collections, Marriott’s Autograph Collection or Hilton’s Curio, there has been a boom regarding these so-called soft brands in the hotel ecosystem.
Take it as a sign the major hotel chains know travelers want to experience more independent-feeling hotels rather than stick to “hard brands” like Westin or Hilton that rely more on business travel. That’s especially true in a climate with more leisure travel than business travel.
Soft brands run with more independence when it comes to things like food, drinks and design. That doesn’t mean they are of any less quality than the hard brands, though.
“We try to keep it as flexible as possible, but there are certain standards when it comes to quality that need to be complied with,” Alexander Schellenberger — Accor’s chief marketing officer for premium, midscale and economy brands — told TPG earlier this year ahead of the Handwritten Collection launch. “We want to at least create some form of consistency around the quality for guests to experience, but for the rest, it’s a soft brand.”
So, while a soft brand may not have all the standardized branded bells and whistles of a Marriott or Hilton, you can sleep easy knowing they’re still getting heavily vetted for quality and customer satisfaction.
Among North America‘s best-known national parks, Glacier Bay is a bit of an outlier.
Unlike Yellowstone or Yosemite, you can’t visit Glacier Bay on a road trip. There are no roads leading into the park, and the only way to reach it is by small plane, boat or ship.
There’s also little infrastructure within the park. It does have a visitor center and lodge, located at its very edge. But its biggest attractions — its giant tidewater glaciers — are viewable only from the deck of a vessel. At its essence, Glacier Bay is a giant, fjordlike body of water lined with snowcapped mountains, forests and glaciers, and it’s best seen from the water.
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It is for this reason that a large percentage of Glacier Bay’s nearly 700,000 visitors a year arrive on a cruise ship. Indeed, you could almost call Glacier Bay a cruise ship park.
Only by arriving by cruise vessel (or another boat, including the park tour boat) can you fully experience the park by traveling up the 65-mile-long waterway to a glacier and back.
Even so, you’ll only see a small portion of the park. Established as a national monument in 1925 and elevated to national park status in 1980, Glacier Bay covers more than 5,200 square miles — an area about the size of Connecticut. That makes it nearly as big as Yellowstone and Yosemite combined — though much of this area is relatively inaccessible.
As a longtime travel writer specializing in cruising, I’ve been to Glacier Bay many times, and it’s one of my favorite places in Alaska. Its glaciers are its star attractions, for sure. But it also offers spectacular mountain scenery, wildlife and — for those who make an effort to come for a multinight stay — wonderful hiking, kayaking and other outdoorsy pursuits.
Related: How to find the right Alaska cruise for you
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Getting to Glacier Bay
As noted above, most of Glacier Bay’s visitors arrive by cruise ship. The typical cruise that includes a visit to Glacier Bay is a seven-night Alaska voyage out of Vancouver, British Columbia, or Seattle that also includes stops at the Alaskan towns of Juneau, Skagway and Ketchikan. The visit to Glacier Bay fills just one day of the seven-night trip.
Two major lines with historic ties to the park — Princess Cruises and Holland America — offer the most sailings with a visit to Glacier Bay. The National Park Service allows just two ships a day into the park, and arrivals are governed by a permitting system that gives preference to lines that operated in the park before the permitting system began.
Norwegian Cruise Line, Seabourn, Cunard Line and Viking also have ships that visit the park, as do small-ship operators UnCruise Adventures, Alaskan Dream Cruises, Lindblad Expeditions and American Cruise Lines.
A trip on a cruise ship isn’t the only way to get into Glacier Bay. Would-be visitors can also fly or take a ferry to Gustavus, a tiny town (population 642) on the edge of the park near the access point for a tour boat that travels into the park daily. Dubbed Baranof Wind and operated by park concessionaire Aramark, the tour boat departs from Bartlett Cove, which is just inside the park boundary and the home to the park’s visitor center.
During the summer tourist season, Alaska Airlines offers daily service to Gustavus Airport (GST) from Juneau International Airport (JNU), 48 miles to the southeast. An air taxi company, Alaska Seaplanes, offers small-plane flights to Gustavus from Juneau year-round. Ferry service to Gustavus is through the Alaska Marine Highway System, which sends a ferry to the town regularly from Juneau.
The two main airlines that fly to Juneau are Alaska Airlines and Delta Air Lines.
Park visitors also can arrive at the park by private or chartered boat.
Related: How to get to Alaska with points and miles
When to go
While Glacier Bay is open year-round, visitor services are extremely limited outside of the summer season, and nearly everybody who visits comes between May and September.
Most cruises that include a stop in Glacier Bay take place between April and September, and the Glacier Bay tour boat only runs in the summer months. The park’s visitor center and only lodge (Glacier Bay Lodge), which share a building, also are open only in the summer.
Summer is the most pleasant time to be in Glacier Bay, temperature-wise. But even at the height of summer, it can be chilly, with temperatures topping out between 50 and 60 degrees during daylight hours. Rain is also common, with the area around Gustavus getting around 70 inches a year.
April, May and June are often the driest months. September and October tend to be the wettest. The bottom line is that, even at midsummer, you should be prepared for any sort of weather. Pack good rain gear, waterproof boots, wool or fleece layers and a warm hat and gloves.
No matter when you go, there’s no fee to enter Glacier Bay, which is unusual for national parks. Nor are there fees for camping or boating permits. So you can leave your national park annual pass at home.
Related: Best time to cruise Alaska
What to see and do
As the name suggests, Glacier Bay is a park all about glaciers. It’s home to more than 1,000 of them, and seeing a glacier up close is the big draw for most visitors.
Specifically, tourists come to view one of the park’s seven-ish giant tidewater glaciers, which flow down from the mountains to the water. I say seven-ish as the park’s rangers in the past couple of years have noted that some of the tidewater glaciers have melted back so much that they may not be interacting with the ocean water anymore. That’s the definition of a tidewater glacier. The park rangers these days like to say there are “no more than seven” of the tidewater glaciers now, maybe fewer.
The reduction in the number of tidewater glaciers at the park is an ongoing trend. When I wrote an earlier version of this guide a few years ago, the number of tidewater glaciers at the park was nine.
Whatever the exact number, for those visiting Glacier Bay by cruise ship, the experience will revolve heavily around a stop at one of these glaciers to watch giant chunks of ice crash down from its face — a magnificent show.
Cruise ships arrive in the park for the better part of a day, and the experience goes beyond a stop at one of the park’s glaciers. Sightings of puffins, harbor seals, Steller sea lions and even the occasional humpback whale or brown bear are part of the allure — all while traveling by water through an immense, glacier-carved landscape.
If you come on a big cruise ship, you’ll be doing your Glacier Bay viewing from the deck of your vessel. Big cruise ships in Glacier Bay never dock, and nobody gets off them. Still, you’ll get the full National Park Service experience. Park rangers and often a local Huna Tlingit cultural guide will board the vessel for the day to offer presentations and shipwide commentary over loudspeakers, lead activities for kids and answer questions.
Some small cruise vessels that spend the night in Glacier Bay do allow passengers to disembark.
For those visitors who travel by plane or ferry to Gustavus, more options are available. In addition to taking the Glacier Bay Day Tour up the bay on the park tour boat ($262.44 per adult; $137.11 for children ages 3 to 12), visitors will find opportunities to hike, kayak and camp.
The day tour on the park tour boat includes stops at two glaciers — Margerie and Grand Pacific. Each towers nearly 250 feet above the ocean and stretches another 100 feet beneath the water. The ice that calves from their faces is, on average, 200 years old.
Hiking trails within the park near Gustavus range from the 1-mile Forest Trail, which offers a leisurely meander through a lush forest, to the 8-mile-long Bartlett Lake Trail, a rugged trek to a tranquil lake. Most visitors head down one of the trails on their own, but for those looking for interpretation, park rangers based at Bartlett Cove offer a daily guided forest loop walk (at 1:30 p.m., as of the publication of this story).
Kayak rentals are available at Bartlett Cove, where the park service visitor center is located, for both day trips around the area and multiday outings deep into the park. Kayakers can go off on their own or sign up for a guided tour.
Birdwatching also is a popular activity in Glacier Bay. The park’s diverse habitat allows for a wide variety of species (at last count, 281), including rainforest species such as the American three-toed woodpecker and neotropical migrant warblers, thrushes and other songbirds. There also are island and cliff seabird colonies of gulls, guillemots, puffins and cormorants.
In addition, daily cultural activities are available at Xunaa Shuka Hit (the tribal house) in Bartlett Cove. Unveiled in 2016, this is the first permanent Huna Tlingit clan house since the original Huna Tlingit villages of the area were destroyed by a glacier over 250 years ago. Located within a short walking distance of Glacier Bay Lodge, it offers the chance to learn firsthand about Huna Tlingit history, culture and life from tribal elders. Visitors can also experience dance performances and native foods and see historical photographs. Hand-carved totem poles tell the Huna Tlingit story.
A National Park Service visitor center is located on the second level of Glacier Bay Lodge. Park rangers are available much of the day to answer questions, and films on the park are available for watching in the visitor center’s auditorium. A ranger program is presented in the auditorium each evening.
Visitors also can get an overview of Glacier Bay’s mountains, ice and water from a flightseeing tour out of Gustavus or even the Alaskan towns of Yakutat or Haines.
Where to stay
If you’re arriving at Glacier Bay on a cruise, you don’t have to worry about a place to stay. You’ll be spending the night on your ship.
Those planning to visit the park by way of Gustavus will find several places to bed down. Many visitors stay at the 48-room Glacier Bay Lodge, which is within the park about 10 miles from the town (rooms from $270.40 a night). Cozy and rustic, the lodge is nestled among Sitka spruce on the shores of Bartlett Cove, which also is home to the park’s headquarters and the jumping-off point for daily tours on the park boat. Glacier Bay Lodge is the only lodging within the park.
Back in Gustavus, you’ll find a handful of small inns, guesthouses and bed-and-breakfasts. They include the 14-room Bear Track Inn (from $495 per person per day, including meals and ground transportation) and the five-room and five-cabin Glacier Bay Country Inn ($319 per person per day, including meals and ground transportation). Gustavus is not a big place; some venues here offer just a few rooms.
You also may face a bit of sticker shock when seeing the rates for lodging in Gustavus. In many cases, this is driven by the fact that the properties operate on a semi-all-inclusive basis, with all meals and transportation from the airport included in the base price.
Unfortunately for points and miles devotees, there are no points hotels in Gustavus. You can find a few points hotels back in Juneau, such as the Four Points by Sheraton Juneau (rooms in the summer start at $389, or 50,000 points) and a trio of Wyndham Rewards-affiliated properties (a Ramada, Travelodge and Super 8).
The park also maintains a free, walk-in campground in a rainforest setting at Bartlett Cove. Available on a first-come, first-served basis, it offers bear-proof food storage caches, composting toilets, a fire pit on the beach and a small warming shelter. Firewood is provided.
That said, most camping in Glacier Bay takes place in the wilderness. The park offers more than 700 linear miles of shorelines, beaches and islands open to camping. Campers can arrange for the park’s tour boat to drop them off at one of several designated locations within the park and pick them up days later.
Campers must register upon arrival at the Visitor Information Station near the Bartlett Cove dock. Campers can call 907-697-2627 prior to arrival to inquire about space availability at the campground at Bartlett Cove.
Related: How to use points and miles to stay near national parks
Where to eat
Again, if you’re arriving by cruise ship, you’ll be eating on board your vessel.
If you’re staying in the Gustavus area, you’ll probably be eating at the lodge or inn where you’re staying or at another one of the lodging properties in town. The town is so small that its dining establishments generally are tied to its lodging outlets. They’re also only open in the summer.
Many of the lodging options offer a “full board” plan that includes three meals each day. Be warned that a la carte pricing at eateries can be high in the Gustavus area, as is true in many places in Alaska. This partly has to do with the high cost of getting supplies to remote parts of the state.
For those staying at Glacier Bay Lodge, the in-house restaurant, the Fairweather Dining Room, is open for breakfast, lunch and dinner for both lodge guests and outsiders. The dinner menu includes local Alaska salmon and halibut. Lunch brings burgers and sandwiches (including a halibut sandwich).
Also open to guests and outsiders is the restaurant at Glacier Bay Country Inn. It serves Alaskan cuisine, such as salmon, typically offered en croute with a green peppercorn sauce.
Bottom line
A visit to Glacier Bay is one of the iconic experiences of a trip to Alaska, and something you should try to do at least once in your life — if only to see the giant calving glaciers. For most visitors, experiencing the park will involve a voyage on a cruise ship that brings just a day in the park. But for those who want to explore deeper in the park, there are ways to do that, too.
Planning a cruise to Alaska or elsewhere? Start with these stories:
Load up today: Get a $5 credit on a $50 Amazon e-gift card for Prime Day tomorrow
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It’s the most wonderful time of the year: Amazon’s Prime Day. TPG has been keeping a close eye on all the deals and best ways for our readers to save during this special sale period, which starts at midnight (Pacific Time) on July 11.
There’s one noteworthy highlight to take advantage of today: a $5 Amazon credit back on a $50 Amazon.com e-gift card.
This discount is available exclusively to Amazon Prime members. If you’re not currently an Amazon Prime member, you can sign up today for a free trial to take advantage of the sale. Additionally, Prime Student allows college students to receive a free six-month trial membership.
Here are the offer details.
Related: The 21 best Amazon Prime Day deals for travelers
How to unlock the Amazon e-gift card deal
This deal basically adds free money to your Amazon account for buying a gift card.
To take advantage of the limited-time deal, add a minimum of $50 on a single Amazon e-gift card to your Amazon basket. You’ll then receive a $5 promotional credit for a future Amazon.com eligible order, which must be redeemed by August 25.
To qualify for the $5 promotional code, you must:
Be a current Prime member
Activate the offer
Purchase at least $50 in qualifying Amazon.com eGift Cards in a single order at Amazon.com before 11:59 p.m. PT on July 10 or when supplies have been exhausted, whichever occurs first.
Act fast if you’re interested in these gift card rewards because, as stated, this deal is only available until supplies run out.
Featured image by JULIE CLOPPER/GETTY IMAGES
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Editor’s note: This is a recurring post, regularly updated with new information and offers.
One of our favorite online shopping portals is back with its annual Big Stack promotion. From July 10 to 12, Rakuten is offering up to 10 American Express Membership Rewards points per dollar (or 10% cash back) at participating retailers.
If you want to get the best deal for your online shopping, click through Rakuten first (yes, that same company with the very fun “Clueless”-themed Super Bowl commercial.).
To use the portal, begin your online shopping trip on the Rakuten website, and search for your desired store. You’ll be redirected to the retailer’s website. After you make your purchase, Rakuten will track your transaction and add bonus rewards to your account — generally within just a day or two.
Better yet, if you’re a new Rakuten shopper, you can also earn a $30 cash bonus when you spend at least $30 on a qualifying purchase within the first 90 days.
Here’s what you need to know about this deal.
Increased cash back with Rakuten
Earning up to 10% (or more) cash back is newsworthy. However, earning up to 10 Amex Membership Rewards points per dollar can be even better for those looking to earn transferable points.
TPG values Amex points at 2 cents each when used toward travel. That means you’ll effectively get up to a 20% return on spending when making purchases during this promotion. So if you’re getting your credit cards ready for the upcoming summer holidays, this is the deal for you.
Related: How to use Rakuten to earn bonus cash back or Amex points on your purchases
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Just note that you must update your earning preference from cash back to Amex points in your Rakuten account before completing your purchase. Also, be aware that switching from Amex points back to cash back is permanent, so think carefully before making that change.
Here are some of the stores participating in this promotion:
Bloomingdale’s
Dermstore
Finish Line
Glossier
Indochino
Macy’s
PetSmart
Ray-Ban
ULTA
Viator
At most merchants, you’ll want to pay with a credit card that earns bonus points and miles on everyday purchases. Some good options include the Capital One Venture Rewards Credit Card (see rates and fees), which earns 2 Capital One miles per dollar on all purchases, and the Citi® Double Cash Card (see rates and fees), which earns 2% back on all purchases — 1% when you buy and 1% when you pay your bill. These rewards can be converted to full Citi ThankYou points if you have a higher-end card like the Citi Premier® Card (see rates and fees).
However, on Viator purchases, consider using a card that earns well on general travel purchases, like the Chase Sapphire Preferred Card or Chase Sapphire Reserve, which earn 2 and 3 Ultimate Rewards points per dollar spent on travel purchases, respectively.
And remember that the 10% back (or 10 Amex points) will be in addition to any earnings on the credit card you swipe.
Related: How to redeem American Express Membership Rewards for maximum value
Stack with credit card offers
Historically, Dell.com has offered bonus points via Rakuten, and it’s one of the participating merchants in the Big Stack promotion. This means now could be a great time to spend your Dell credit from The Business Platinum Card® from American Express.
As a reminder, the card provides cardholders up to $400 in annual statement credits per year toward U.S. purchases with Dell in the form of $200 back in January-June and the second $200 from July-December. Enrollment is required in advance.
In addition to computers, Dell sells projectors, laptop bags, headphones, monitors, video games and more.
Alternatively, if you have The Platinum Card® from American Express, you’ll enjoy up to $100 in annual statement credits for purchases at Saks Fifth Avenue ($50 from January-June and another $50 from July-December). Enrollment is required in advance. While Saks isn’t participating in this promotion, you can still earn more on your purchase by going through Rakuten.
Related: 11 things you can buy with the Amex Platinum $50 Saks credit
Finally, be sure to see if any of the participating merchants also have offers through your favorite credit cards. You may be eligible for discounts or bonus points through Amex Offers, Chase Offers or Citi Merchant Offers, so it’s worth checking those platforms before making an online purchase.
Bottom line
This week, you can earn up to 10% cash back — or even better, up to 10 Amex Membership Rewards points per dollar spent at Rakuten.
Between this excellent earning rate and the $30 new customer bonus, now’s a great time to earn a bunch of points toward free flights to your next vacation spot with surprisingly little effort.
Additional reporting by Andrew Kunesh, Ehsan Haque, Summer Hull, Kyle Olsen and Ryan Smith.
Navigating income taxes during retirement can be complex and your golden years are a time to relax and enjoy your hard-earned cash. Your IRAs, pensions, taxable accounts and Social Security distributions create various tax implications. So, it’s vital to understand them and implement strategies to reduce your tax liability and maximize your retirement funds. You may want to speak with a financial advisor to get a more personal look at how your income will be taxed in retirement.
Federal Tax Rates for Different Types of Retirement Income
Federal tax rates vary by income type and level. It’s important to evaluate what each type of income you expect is going to look like so that you can plan for retirement. Here’s a breakdown of the most common taxes during retirement:
IRAs and 401(k)s
Traditional IRAs and 401(k)s offer tax-deferred growth, meaning you don’t pay taxes on the contributions or investment earnings until you withdraw the funds in retirement. Withdrawals from these accounts are generally taxable income. The tax rate depends on your total income, filing status and the federal income tax brackets in effect during the year of withdrawal.
On the other hand, you fund Roth IRAs and Roth 401(k)s with after-tax contributions, meaning you pay taxes on the money before it goes into the account. Qualified withdrawals from Roth accounts, including both contributions and earnings, are tax free.
Taxable Accounts
Taxable accounts, such as brokerage and savings accounts, use after-tax money. Therefore, you’ll pay taxes on any interest, dividends or capital gains earned from investments in these accounts. Specifically, interest income incurs regular income tax rates, while dividends and capital gains receive different rates depending on how long you hold the investments before selling (short-term vs. long-term).
Selling assets after holding them for less than a year creates short-term capital gains taxes, which the government treats as regular income. On the other hand, selling assets after holding them for a year or more creates long-term capital gains taxes, as seen below:
Pension Income
Monthly payments from your employer’s pension program or a private annuity will incur standard income taxes. In addition, if you opt for a one-time lump sum payment that empties your pension, you’ll owe income taxes for the entire amount.
Remember, employer pension payments come to you after having a specific amount of taxes subtracted. This feature means a large tax bill won’t wallop you when you file (provided you haven’t had an unexpected infusion of income from elsewhere that year).
Earned Income
Earned income receives standard tax rates, like many other types of income listed. However, wages from an employer or self-employment are subject to Social Security and Medicare taxes, also known as FICA. FICA taxes incur an additional 7.65% rate on income from a part-time job and 15.3% from self-employment income (you’ll receive half of that back when you file taxes).
Remember, earned income can run up against Social Security benefits if you make too much. Specifically, for 2023, earning more than $21,240 results in a $1 reduction for every $2 earned after the threshold if you’re under what the government considers full retirement age. Once you reach full retirement age, the limit changes to $56,520 and the penalty is a $1 reduction in benefits for every $3 earned.
Social Security
Social Security also receives taxation based on your income level and filing status. The Social Security Administration adds your adjusted gross income with nontaxable interest income and half of your Social Security benefits when calculating income thresholds for taxes. Then, the government charges federal income tax rates on 50% or 85% of your Social Security check.
The chart below outlines the different possible circumstances and tax rates:
Single Filers
Income
Percentage of Social Security Income Taxed
$0 – $24,999
0%
$25,000 – $34,000
50%
$34,001+
85%
Married Filing Jointly
Income
Percentage of Social Security Income Taxed
$0 – $31,999
0%
$32,000 – $44,000
50%
$44,001+
85%
Keep in mind, if you are married and choose to file a separate tax return, it is likely that you will be required to pay taxes on your benefits.
How to Minimize Your Tax Liability in Retirement
Most people have the very similar goal of trying to reduce the potential tax liability during retirement. While the income you bring in and where you live are going to play a huge role in the taxes you pay, there are some things you can do to improve your situation. In fact, the tips below can help reduce your tax burden during retirement.
1. Remember To Withdraw Your Money From Your Retirement Accounts
Once you reach the age of 73 (or 70½ if you were born before July 1, 1949), you must begin taking required minimum distributions (RMDs) from most retirement accounts, such as traditional IRAs and 401(k)s. Failing to withdraw the RMD amount results in a 25% penalty on the neglected sum plus the income tax it would have incurred.
However, if you have multiple retirement accounts, you have some flexibility in choosing which account(s) to withdraw from. By strategically planning your withdrawals, you can control the timing and amount of taxable income and optimize your tax situation.
2. Understand Your Tax Bracket
Understanding your tax bracket is crucial for retirement planning. You can minimize your tax liability by managing your taxable income to stay within a lower tax bracket. So, it’s best to use the tables above and the federal income tax brackets for the year to calculate a comfortable amount of income without exposing your money to higher rates.
3. Make Withdrawals Before You Need To
You can plan your withdrawals strategically if you have a mix of taxable and tax-advantaged accounts, such as a 401(k) and a Roth IRA. Making withdrawals from taxable accounts or tax-free accounts like Roth IRAs before you need the funds can help reduce your future RMDs and potentially lower your overall tax burden in retirement.
4. Invest in Tax-Free Bonds
Tax-free bonds, such as municipal bonds, can be an attractive investment option for retirees seeking tax efficiency. Interest income from municipal bonds is usually exempt from federal income tax and sometimes from state and local taxes.
5. Invest for the Long-Term, Not the Short-Term
Holding investments for the long term, particularly in taxable accounts, can be advantageous from a tax perspective. Specifically, when you sell investments held for more than one year, you qualify for long-term capital gains tax rates, which are typically lower than ordinary income tax rates. By avoiding frequent buying and selling, you can minimize the realization of short-term capital gains, which receive the standard federal income tax rates.
For example, say you’re a single filer with a $44,000 income. Part of that income is from capital gains. However, if the capital gains are short-term, your marginal tax bracket is 12%, while your long-term capital gains bracket is 0%.
6. Move to a Tax-Friendly State
Some states have lower or no state income taxes, which can significantly impact your overall tax burden in retirement. If feasible, consider relocating to a tax-friendly state. However, before making such a decision, it’s essential to assess various factors like cost of living, healthcare and personal preferences. Remember, the states that don’t charge personal income taxes are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
The Bottom Line
The type of income that you receive in retirement could change the way that it is taxed. Many can avoid some of this by moving to a tax-friendly state, but most people can’t avoid it entirely. It’s important to understand what your personal tax liability could potentially become and to plan accordingly so that you’re prepared for retirement when it comes.
Tips for Being More Tax-Efficient
The road to financial stability in retirement looks different for everyone. Your investment account types, medical conditions and desired lifestyle can present unique challenges but a financial advisor can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
With Fourth of July travel behind us, we’re looking ahead to the rest of summer and beyond.
If you are heading abroad during the remainder of this summer or in the fall, the U.S. Department of State advises travelers to renew their U.S. passport a minimum of six months in advance.
As of July, current passport processing times are the same as they were in March — 10 to 13 weeks for routine service and seven to nine for expedited, not including processing and mailing times.
If you’ve already applied, we encourage as much patience as possible, but you can always check the status of your passport online for updates.
How to check your passport application status online
Once you apply for your passport, it’ll take seven to 10 business days for your application to be trackable online via the online passport status system.
From there, enter your last name, date of birth, Social Security number and security code.
Before that time frame, the only updates you will see are either “Not Found,” which means it is in transit to a passport agency, or “In Process,” which means it is with the U.S. State Department and will be reviewed by staff.
Additionally, you can provide your email address to receive automatic email updates on your passport status.
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How to check your passport application status via phone
An alternative to the online tool, you can also inquire about your passport status via phone by calling the National Passport Information Center at 877-487-2778 (or 888-874-7793 if you’re hard of hearing).
Phone hours are Monday through Friday, from 8 a.m. to 10 p.m. EDT and from 10 a.m. to 3 p.m. EDT on Saturdays. They are closed on Sundays.
Current processing times
As mentioned, both new applicants and those renewing can expect to receive their passports within 10 to 13 weeks for routine service, costing $130. For more immediate travel, the U.S. Department of State provides the option for expedited service within seven to nine weeks for an additional $60.
Note those time frames do not include mailing times, so be sure to factor in an additional two weeks for applications to arrive by mail at a passport agency or center and up to two weeks for an applicant to receive a completed passport in the mail.
Bottom line
In addition to processing times, remember that many countries, including most of Europe, require your passport to be valid for at least six months at the time of entry, so factor that into when you plan to submit your passport application.
As of July, online passport renewal is currently unavailable, though the U.S. Department of State expects to roll that out later this year.
Related reading:
Additional reporting by Mimi Wright and Samantha Rosen.
Opening a 529 plan is a tax-advantaged way to set aside money for college. The money you contribute can grow tax-deferred and qualified withdrawals are tax-free. While there is no federal tax break for making 529 plan contributions, you may be able to claim one at the state level. Breaking down the 529 tax deduction by state can give you an idea of how you might be able to benefit when saving for college. Need help creating a college savings plan? Get connected with a financial advisor near you to learn more.
Understanding 529 Plan Tax Deductions
Tax deductions are amounts that reduce your taxable income for the year. You can claim both federal and state tax deductions. They’re different from tax credits, which reduce your tax liability on a dollar-for-dollar basis.
Claiming tax deductions can help you to pay less in taxes or garner a bigger refund if you typically get money back at the state or federal level. Some deductions are above-the-line, while others require you to itemize on your tax return. Credits, meanwhile, lower your tax bill.
The federal government offers some tax deductions for education, but a deduction for 529 plan contributions isn’t one of them. You can, however, deduct interest paid to student loans. The American Opportunity Tax Credit and the Lifetime Learning Tax Credit can also be claimed to offset higher education expenses.
529 Tax Deduction by State
Every state offers at least one 529 plan, but states are not required to offer a tax deduction or other tax breaks for education. That being said, a number of states do offer deductions if you’re making contributions to a 529 plan. States can also offer credits or other tax breaks as an incentive to save for college.
Nine states do not have income tax which means they don’t offer a 529 plan deduction. Those states are Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. California, Hawaii and Kentucky do not offer any type of 529 tax deduction but do assess income tax.
This table breaks down the 529 tax deduction by state.
529 Tax Deductions by State
Alabama
$5,000 single filers; $10,000 joint filers
Alaska
None
Arizona
$2,000 single or head of household; $4,000 joint filers
Arkansas
$5,000 single filers; $10,000 joint filers
California
None
Colorado
Full contribution
Connecticut
$5,000 single filers; $10,000 joint filers
Delaware
$1,000 single filers; $2,000 joint filers
Florida
None
Georgia
$4,000 single filers; $8,000 joint filers
Hawaii
None
Idaho
$6,000 single filers; $12,000 joint filers
Illinois
$10,000 single filers; $20,000 joint filers
Indiana
20% tax credit on contributions (maximum credit $1,500)
Iowa
$3,785 per beneficiary
Kansas
$3,000 single filers; $6,000 joint filers
Kentucky
None
Louisiana
$2,400 single filers; $4,800 joint filers
Maine
Up to $1,000 per beneficiary
Maryland
$2,500 single filers; $5,000 joint filers
Massachusetts
$1,000 single filers; $2,000 joint filers
Michigan
$5,000 single filers; $10,000 joint filers
Minnesota
$1,500 single filers; $3,000 joint filers
Mississippi
$10,000 single filers; $20,000 joint filers
Missouri
$8,000 single filers; $16,000 joint filers
Montana
$3,000 single filers; $6,000 joint filers
Nebraska
$10,000 single filers; $5,000 married filing separately
Nevada
None
New Hampshire
None
New Jersey
$10,000 per taxpayer
New Mexico
Full contribution
New York
$5,000 single filers; $10,000 joint filers
North Carolina
None
North Dakota
$5,000 single filers; $10,000 joint filers
Ohio
Up to $4,000 per beneficiary
Oklahoma
$10,000 single filers; $20,000 joint filers
Oregon
$150 tax credit single filers; $300 tax credit joint filers
Pennsylvania
$17,000 single filers; $34,000 joint filers
Rhode Island
$500 single filers; $1,000 joint filers
South Carolina
Full contribution
South Dakota
None
Tennessee
None
Texas
None
Utah
4.95% tax credit per beneficiary
Vermont
10% credit on up to $2,500 for single filers; $5,000 joint filers (maximum $250 per taxpayer, per beneficiary; VHEIP is the only eligible plan)
Virginia
Up to $4,000 per account
Washington, D.C.
$4,000 single filers; $8,000 joint filers
Washington
None
West Virginia
Full contribution
Wisconsin
$3,860 per beneficiary; $1,930 for divorced parents or those married filing separately
Wyoming
None
Claiming 529 Plan Tax Benefits
To claim a tax deduction or credit for 529 plan contributions, you must live and file taxes in a state that offers these benefits. You must also be eligible to get a tax break, based on your relationship with the account beneficiary.
In most states, any contributor to a 529 plan can claim a tax break, regardless of whether they’re the account owner or not. However, some states limit tax benefits to account owners only. That means grandparents, aunts and uncles or other contributors would be excluded from deducting contributions or claiming tax credits.
The good news is that there are no time limits on claiming education tax benefits associated with a 529 college savings plan if you’re eligible to do so. Unlike Coverdell Education Savings Accounts (ESAs), which require you to withdraw all assets once the beneficiary turns 30, 529 plan money can stay in the account indefinitely. So, as long as you’re making contributions you could still claim a deduction or tax credit if you’re eligible.
Is Contributing to a 529 College Savings Plan Worth It?
Saving money in a 529 plan can be worth it for a few reasons, starting with the laundry list of tax breaks they offer. Contributions grow on a tax-deferred basis, so you’re not having to pay tax on any earnings while the money is in the account. Any qualified withdrawals are tax-free, as long as you use them for eligible higher education expenses. You can also withdraw up to $10,000 without a tax penalty to pay for qualified expenses for grades K-12.
You can open a 529 plan and contribute money to it on behalf of any eligible beneficiary, including yourself or your spouse. Should your beneficiary decide not to go to college or if they don’t use up all of their savings, you could transfer the money to a different beneficiary. And as outlined in the table above, some states offer tax breaks for college savings in the form of deductions or credits.
Aside from those benefits, a 529 plan can offer a better rate of return on your money compared to keeping money in a high-yield savings account or even a CD. They also allow for more flexibility than savings bonds. And while you could tap into an Individual Retirement Account (IRA) to pay for college, that could shortchange your retirement savings and potentially trigger some tax consequences.
The Bottom Line
Getting a head start on college planning can help you to be better prepared when it’s time for your student to head off to school. Saving money in a 529 plan can benefit you at tax time and your money may have more room to grow than it would sitting in a bank account. Reviewing your 529 tax deduction by state can help you figure out how much of an additional tax advantage you might get from saving.
Financial Planning Tips
If you’re ready to start saving for college but you don’t know how to approach it, getting professional advice can help. A financial advisor can walk you through different college savings options so you can choose the one that best fits your needs and situation. Finding a financial advisor doesn’t need to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
When comparing 529 savings plans, remember that you’re not locked into choosing your state’s plan. You could invest in a different state’s plan if you prefer the range of investment options offered or if another plan allows for higher lifetime contribution limits. Keep in mind, however, that your choice of plan may affect your ability to deduct those contributions on your state income tax return.
Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.