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?
Tuition, fees, room & board, books, computers, related software or internet services, and required equipment are all eligible expenses for higher education; tuition only is eligible for elementary and secondary school students.
What are the limits?
There is no maximum contribution amount. However, there is an overall maximum account balance limit of $505,000
What about carryovers?
You can transfer funds from another 529 college savings plan to your Edvest account for the same beneficiary once within a 12-month period without incurring a taxable event.
What if I don’t use it for education expenses?
If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings
Where to Enter?
- State Section
- College Savings Acct Schedule CS
For more information