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?
The main purpose of this plan 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?
College expenses, including tuition, books, fees, room and board, a computer and more
What are the limits?
You can make contributions in a variety of ways with a minimum of only $25.
You can contribute up to $15,000 per year
What about carryovers?
Yes, you can rollover your 529 into another 529 plan.
What if I don’t use it for education expenses?
If you do not use the money for qualified expenses you will be required to pay state and federal taxes on the money and an additional federal tax penalty of 10%.