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, certain room and board expenses, fees, books, supplies, and equipment required for the enrollment and attendance of the Beneficiary at an eligible educational institution, which includes most post-secondary institutions.
How much is the maximum deduction?
- Single filers - $10,000/year
- Joint filers - $20,000/year
What about carryovers?
Yes, you can transfer funds from another 529 college savings plan to your OCSP account for the same beneficiary once within a 12-month period without incurring a taxable event. The 529 plan from which you are transferring funds may be subject to different features, costs and surrender charges.
What if I don’t use it for education expenses?
The earnings portion of a non-qualified withdrawal is subject to state and federal income taxation and 10% federal tax on earnings (the "Additional Tax")
Where to enter my contributions?
- State Section
- Contributions to OK 529 Savings Plan
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