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 expenses for the purchase of computer or peripheral equipment (as defined in section
What are the limits?
$15,000 as an individual
$30,000 as a married couple
What about carryovers?
There are no penalties or federal income tax consequences for rolling over money from another state’s 529 plan to a CollegeAdvantage Direct Plan account, provided it has been more than 12 months since there was a previous rollover for the same beneficiary of the account.
What if I don’t use it for education expenses?
The earnings portion of any withdrawal will not be subject to the additional 10% federal tax penalty, but will be subject to federal, state, and local income taxes.
Where to enter?
- State Section
- Subtractions From Income
- Enter contributions to College Adv 529 Savings plan
For more information, please see the links below: