All the contributions you make towards a 529 account are not tax-deductible. Some states, however, may consider 529 contributions tax deductible. Check with your 529 plan or your state to see if you qualify. However, you must use the fund solely for the intended purpose, for example, education tuition, fees, boarding rent, books, etc. If you decide to use the fund for unrelated expenses, you will pay a 10% penalty and owe taxes on income earnings.