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, mandatory fees, books, supplies, computers, and equipment required for enrollment or attendance; certain room and board costs during any academic period the beneficiary is enrolled at least half-time; and certain expenses for a special-needs student.
What are the limits?
Individuals can invest up to $15,000 ($30,000 for married couples)
What about rollovers?
You may perform a federal income tax-free rollover from another 529 plan into your CollegeBound Saver account for the same beneficiary once every 12 months.
What if I don’t use it for education expenses?
The earnings portion of a distribution not used for a beneficiary's qualified higher education expenses is subject to federal and state income taxes and may be subject to a 10% federal penalty tax
Where to Enter?
- State Section
- Subtractions From Income
- Tuition Savings Program Contributions
The maximum income subtraction cannot exceed $500, $1,000 if a joint return, regardless of the
number of accounts.
For more information: