Since when is the maximum value 5000 for 529 account contributions (for higher education expense purposes)? I contributed $6,000, but TT won't allow more than 5000...?

Forum|Forum|5 years ago
February 7, 2021
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TurboTax Premier Online

Hal_Al

Employee

There is no federal deduction for making a contribution to a 529 plan. Some states allow a deduction on the state return. If your state is one, it will come up in the state interview; usually in the "Here's how (your state) handles income differently" section. Turbotax will limit you to your state's deduction limit, For a list, see:

http://www.savingforcollege.com/compare_529_plans/index.php?page=compare_plan_questions&plan_question_ids[]=437&order_by=plan_question_437

lafioscaAuthor

Thank you very much.

Indeed, my State (Indiana) does give a 20% for 529 contributions up to the first $5,000. It's wonderful.

I was just perplexed as to why TurboTax software would prevent me from typing in a contribution figure greater than $5,000. I was expecting the software to cap the amount when it is calculating the allowable credit.

Nevertheless, thank you very much for your time.