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 Indiana 529 plan?
CollegeChoice 529 offers:
- Tax-deferred investment growth
- Tax-free withdrawals for qualified expenses, like tuition, room and board, computers and laptops, and books
- Gift- and estate-tax benefits
- Control by you over how assets are used
- Flexibility to use at eligible colleges, universities and vocational schools worldwide
What are the qualifications?
Eligible expenses can include tuition, computers, mandatory fees, books, supplies, and equipment required for enrollment or attendance; certain room and board costs during any academic period the beneficiary is enrolled at least half-time; and certain expenses for a special-needs student.
What are the limits?
- For single filers: 20% on up to$5,000/yr
- For joint filers: 20% on up to$5,000/yr
What about carryovers?
You may perform a federal income tax-free rollover from another 529 plan into your CollegeChoice 529 account for the same beneficiary once every 12 months.
What if I don’t use it for education expenses?
Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes.
- State Section
- Schedule IN-529
- Add Credit