Section 529 Plan Contributions 1040

Sometimes for estate planning purposes or other reasons families will make contributions that exceed this amount.

Section 529 plan contributions 1040.

529 qualified state tuition plans are entered at state level. Anyone can contribute to a section 529 plan parents grandparents or other relatives and there s no income limitation. However some states may consider 529 contributions tax deductible. Report 529 plan contributions above 15 000.

A qualified tuition program qtp also referred to as a section 529 plan is a program established and maintained by a state or an agency or instrumentality of a state that allows a contributor either to prepay a beneficiary s qualified higher education expenses at an eligible educational institution or to contribute to an account for paying those expenses. Below is a list of all the states that have a line for the qualified tuition plans. Section 529 qualified tuition plans. Where do i enter contributions for 529 college savings program in a 1040 return using worksheet view.

There is also an unlimited carryforward of excess contributions. In 2019 529 contributions up to 15 000 for individuals or 30 000 for married couples filing jointly will qualify for the annual federal gift tax exclusion. If you use the money for qualified educational expenses the earnings remain tax free. Contributions including rollover contributions to an ohio 529 plan are deductible up to 2 000 per beneficiary regardless of filing status.

Contributions to any other irc section 529 programs may not be deducted. Never are 529 contributions tax deductible on the federal level. A 529 plan is designed to help save for college. K 12 education one of the tcja changes allows distributions from 529 plans to be used to pay up to a total of 10 000 of tuition per beneficiary regardless of the number of contributing plans each year at an elementary or secondary k 12 public private or religious.

Section 529 qualified tuition plans. A 529 plan allows you to save for college or higher education while receiving some type of tax benefit. Re contributions would not count against the plan s contribution limit. If you live in ohio and your niece s parents already have an account for her in that state for example you can deduct up to 2 000 you contribute to her account per year whether filing as single or jointly.

The total subtraction for contributions made to both college savings plans may not exceed 10 000 for single filers and 20 000 for joint filers even if you contributed more. Connecticut residents can deduct contributions to a connecticut section 529 plan on line 48 of the connecticut individual income tax return form ct 1040.