Common questions about Maryland 529 college savings plan deductions in ProConnect Tax

Below, you'll find answers to frequently asked questions about the Maryland section 529 deduction for college savings plans:

How do you enter prepaid tuition contracts under the Maryland College Investment Plan?

1. Go to Input Return ⮕ State & Local ⮕ Modifications ⮕ MD Modifications.
2. Scroll to the Maryland Subtractions section.
3. Enter the amount contributed in:
   • (XA) Prepaid tuition contract - prepaid college trust [O]
   • (XB) Prepaid tuition contract - college investment plan [O].

Additional information about Maryland prepaid college trust:

If you're the account holder or a contributor, you can deduct up to $2,500 of payments each year from your Maryland State income per account — $5,000 for two, $7,500 for three, and so on.

You can deduct payments exceeding $2,500 per account in future years until the full amount of payments has been deducted.

Additional information about Maryland college investment plans:

If you're the account holder or a contributor, you may deduct up to $2,500 of contributions each year from your Maryland State income per beneficiary — $5,000 for two, $7,500 for three, and so on.

But you can't deduct more than $2,500 per beneficiary per year. Contributions totaling more than $2,500 per beneficiary may be deducted for up to 10 years.

For more information about Maryland college savings plans, see Maryland 529.