If you contributed 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?
Qualified higher education expenses include tuition, fees, textbooks, supplies, the purchase of computer or peripheral equipment, computer software, or Internet access and related services if used primarily by the beneficiary while enrolled at school, and equipment required for enrollment or attendance and certain room and board expenses for the academic term during which the student is enrolled at least half time at an eligible educational institution
What are the limits?
There is no income limit or savings cap and there is a high contribution limit of $400,000 per beneficiary
What about carryovers?
individual 529 education savings plan accounts can be transferred from one beneficiary to another eligible member of the family or rolled over into other 529 accounts for the same beneficiary or an eligible family member.
What if I don’t use it for education expenses?
When it's time to use the money for college, your withdrawals are tax-free as long as the funds are used for qualified college expenses like tuition, books and room and board.
Where to enter?
- State Section
- Subtractions from income
- Enter college savings plan-contributions made in 2019
For more information