Question

How do I set up QTPs for our grandkids (granddaughter and grand son) who are in Maryland and we are in NJ?

Forum|Forum|5 years ago
May 9, 2021
1 reply
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1. How do I set up QTPs for our grandkids (granddaughter and grand son) who are in Maryland?

2. We are in NJ.

3. Can we deduct more money for previous tax year, i.e. 2020, 2019, 2018, 2017 ...etc?

4. What is the max. deduction per year for 529 Plan? Is the max. per tax payer or per Family?

5. Should I set up 529 plan for grand daughter and grand son respectively?

TurboTax Home & Biz Windows

H

hcl618Author

BTW, We already submitted our tax return of 2020. Can we set up the 529 plan now and submit amendment of Tax 2020 to claim the 529 plan deduction or wait for next year to claim it?

AmyC

Employee

NJ does not allow deductions on your tax return while MD does allow up to $2,500 per child.

1. You can set up the 529 with anyone you want, you just need to decide which state. I recommend MD because you could gift the money to your kids, they put it in the 529, and take a tax deduction. Unfortunately, you won't get a deduction since you are not a MD resident.

2. NJ - no deduction.

3. No

4. NJ none, MD up to $2,500 per child. See Tax Advantages & Benefits of 529 Plans - Maryland 529

5. You can set up one for each grandchild or just one.

You will not need to amend since NJ does not allow a deduction. See NJ Division of Taxation - Section 529 - Qualified Tuition Plans

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