WHAT IS THE DEDUCTION AMOUNT FOR 529 PLAN IN IL-1040?

Forum|Forum|4 years ago
January 29, 2022
1 reply
9 views

Hi!

Illinois gives deduction for contribution in 529 plan (10k for single payer). TP has contributed 10k and then withdrawn 10k for college fees in the same year.

Question is, should he get tax deduction for contributing 10k while preparing his IL-1040? What is the amount that goes into Sch. M, IL-10 for 529 plan contribution? 10K

ProSeries Professional

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T

Terry53029

Intuit Community Champion

If your client opened a Bright Star 529 savings plan there are no restrictions on withdrawals for qualified education expenses, and he can take up to a $20000 tax deduction (MFJ) even in the same year. see link:

https://smartasset.com/college-savings-plans/illinois-529-plans#:~:text=Illinois%20offers%20two%20529%20college,the%20highest%20in%20the%20nation.

qbteachmt

Level 15

I'm not sure how to read this.

Are you asking about this person's maximum deduction, when they contributed $10K? Or, the maximum amount allowed per the regulation? Typically, you can't deduct more than you contributed. Or, are you trying to net the two events?

Don't yell at us; we're volunteers

R

RR Reed

Level 3

Hi all,

I have a related IL 529 question. My client gives/gifts/contributes money to a child's 529 plan by writing a check to the parents. So clearly client is not account owner of the 529 plan. Who deducts the contribution in this case?

Thanks!

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