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 529 plan?
Its main purpose is to help families contend with the future high costs of their children’s or grandchildren’s college or vocational education
What are the qualifications?
Funds may be used to pay Qualified Higher Education Expenses, which are limited to the following:
- Expenses for special needs
What are the limits?
$2,400 per year single account owners
$4,800 per year owners filing a joint return.
What about carryovers?
START Saving Plan funds cannot be rolled over into a START K12 Account because the law states that this is not allowable. If you choose to open a START K12 Account, any fund remaining — after your child graduates from high school — can be rolled over into a START Saving Plan Account to cover Qualified Higher Education Expenses for postsecondary education.
What if I don’t use it for education expenses?
If the beneficiary does not use all START account, the funds the earnings included in the refunded amount become taxable by the federal and state governments and may be subject to a 10% (of earnings) penalty tax imposed by the IRS.
- State Section
- Subtractions from income
- Other subtractions
- Choose 09E-Start savings program contribution ( drop down menu)