Georgia's 529 Path to College Plan. Am I getting correct refund?

Forum|Forum|2 years ago
April 15, 2023
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Below is the information on Tax deduction for Georgia's 529 Path to College Plan

"Contributions up to $4,000 per year, per beneficiary, are eligible for a Georgia state income tax deduction for those filing a single return; and $8,000 per year, per beneficiary, for those filling a joint return."

I've 2 kids so per above upto $16000 should be deductible. But turbo tax seems to be updating refund information above $16000 too. See below what refunds I am getting. Is this a bug in turbotax or I am misinterpreting the rule?

GA 529 contribution	My GA Refund
$ -	$ (200.00)
$ 8,000.00	$ 260.00
$ 16,000.00	$ 720.00
$ 24,000.00	$ 1,180.00
$ 32,000.00	$ 1,640.00
$ 64,000.00	$ 3,480.00

AnnetteB6

Neither the input screens nor the Georgia Schedule 1 form ask how many beneficiaries you have contributed for in the Georgia 529 Path to College Plan. Without knowing the number of beneficiaries, your entry into TurboTax and to the Georgia tax return is simply based on the 'honor system'. Don't enter more than you can deduct based on the information on the screen giving you guidance.

The beneficiary of the 529 account is not necessarily a dependent on your return, so the limitation cannot be applied based on that information at hand.

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