If you made a contribution to the 529 plan, you will be able to claim a subtraction from income. If you withdrew money from your 529 plan, you may have to add the withdrawal back to your income if it was not used for educational purposes.
What is the Connecticut 529 plan?
The Connecticut Higher Education Trust (CHET) is a state-sponsored, tax-advantaged 529 college savings plan that’s helping families and individuals plan for the cost of higher education.
What are the qualifications?
Funds can be used at any accredited university, college or vocational school nationwide — and many abroad. Basically any institution eligible to participate in a federal student aid program qualifies. In addition, up to $10,000 annually per student, in aggregate from all 529 plans, can be withdrawn free from federal tax if used for tuition expenses at a public, private or religious elementary, middle, or high school
What are the limits?
For single, head of household, or married filing separately: $5,000/yr
For joint or qualifying surviving spouse: $10,000/yr
What about rollovers?
You can carry over the excess amount for the five taxable years following the deduction. An incoming rollover from another qualified tuition program does not qualify as a contribution for income tax purposes.
What if I don’t use it for education expenses?
The earnings portion of this type of withdrawal will be subject to tax, including the additional 10% federal tax.
- State Section
- Deductions from Income
- Contributions To Higher Education Trust