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Common questions about Maryland 529 college savings plan deductions in Lacerte

by Intuit• Updated 1 year ago

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

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

Go to Screen 51, Modifications.
Scroll to the Maryland Subtractions section.
Enter the amount contributed in:
- (XA) Prepaid tuition contract - prepaid college trust [O] (input sheet code 51)
- (XB) Prepaid tuition contract - college investment plan [O] (input sheet code 31).

The information will flow as follows:

Prepaid tuition contract - Maryland prepaid college trust

Lacerte prints the amount on line XA of the subtractions form, prints the code "xa" in the box on the other subtractions line of the main form, and includes the amount in total subtractions.

Additional information about Maryland prepaid college trusts

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.

Prepaid tuition contract - Maryland college investment plan

Lacerte prints the amount on line XB of the subtractions form, prints the code "xb" on the other subtractions line of the main form, and includes the amount in total subtractions.

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.

Lacerte Tax 2023

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