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alice_yan_zhuang

Question

Why turbotax didn't calculate the refund for 529 Plan in Indiana correctly?

Forum|Forum|4 years ago
January 22, 2022
2 replies
0 views

I put the contribution of $5000 to 529 plan and I usually see $1000 credit in the state tax credit. But this time when I put in the same amount, the credit only shows $200 in Turbotax. Anyone knows why?

Are you subject to a recapture of a previously claimed tax credit? TurboTax Learn more states:

If you took a credit for a contribution in a previous tax year and made a nonqualified withdrawal in 2021, you'll have to repay part or all of the credit amount (this is called a recapture).

See also this:

A new law in Indiana provides that an account owner of an Indiana College Choice 529 account must repay a portion of a previously-claimed Indiana tax credit if any nonqualified withdrawal is made from the plan. The law includes as nonqualified withdrawals any withdrawals made from an account that is terminated within 12 months after the account is opened, rollovers to another 529 plan, and other withdrawals that do not meet the requirements of a qualified withdrawal.

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alice_yan_zhuangAuthor

No, I have never withdrawn from 529 account before.

First, make sure that you didn't accidentally enter $1,000 into the box instead of $5,000 because you were thinking about the credit amount and not the amount you contributed.

Second, It is a good idea to first clear your cache and cookies - which means removing all of the temporary programs that can gum up your web browser. If that doesn't work, try using a different web browser.

If that doesn't work I would recommend using the "Live Expert" help in the right upper corner to see if having someone walk you through helps.

Here is a link on how to clear your cache and cookies.

Here is a link to finding a TurboTax expert.

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