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?
Qualifying expenses include tuition, fees, room, board, books, equipment and supplies required for attendance, according to the IRS guidelines.
Where do I enter my 529 contributions?
Use the instructions below to navigate our software and report your 529 contributions.
- State Section
- Edit West Virginia state return
- Subtractions from Income
- Contributions to the West Virginia Prepaid Tuition Trust Fund
What about carryovers?
Investment options may be changed, tax-free, twice during any calendar year. Future allocations can be changed on an unlimited basis.
What if I don’t use it for education expenses?
Earnings on non-qualified distributions are taxable as ordinary income and may also be subject to a 10% federal income tax penalty and may also have state tax implications.
Follow the instructions below to report any 529 distributions you did not use for education expenses:
- State Section
- Edit West Virginia state return
- Additions to Income
- Enter withdrawals from a West Virginia Prepaid Tuition/ SMART529 Savings plans NOT used for qualifying expenses