MD 529 plan contribution entry

[wwjd]

I entered the contribution amount on line xa in form 502SU.  I thought it is up to $2,500 per contract but no matter how much I enter, the program subtract the whole amount instead of cutting the amount up to the limit.   Am I not supposed to enter the amount directly on line xa? And how do they know if I entered $5,000, that was for the one or two? I used supporting statement and put the names and the amount to show how many contracts. Am I doing it right?

[dascpa · Accepted solution]

ProSeries subtracts your data entry as it does not know how many account holders and how many beneficiaries.  Either keep an Excel type of worksheet for any carryovers or input a supporting worksheet to subtract out the carryovers, such as:

Account holder Jane, beneficiary Mary 222 contribution $10,000.  

Less: Carryover to 2023 -$7,500.

So then ProSeries will report the correct $2,500 max deduction per account holder, per beneficiary.

[CoriG]

Which form do you use to enter MD 529 contribution for a Resident of MD? 

What line?

[CoriG]

To enter MD 529 contribution, go to MD state, form 502SU (Substructions from income0 on line XB