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March 6, 2025
Question

Deduct 529 donation for child in Texas on PA taxes

  • March 6, 2025
  • 1 reply
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Are donations to a grandchilds Texas 529 Plan deductible on PA tax return? 

    1 reply

    March 6, 2025

    Yes.  Pennsylvania provides a state income tax deduction for contributions to any 529 plan.  This deduction can be up to the federal gift tax exclusion of $18,000 in 2024, per donor per beneficiary in 2024. This tax-advantaged feature applies to any 529 plan, not just those offered by Pennsylvania.  For married couples, contributions up to $36,000 per beneficiary, per year, are deductible, provided each spouse had taxable income of at least $18,000.  In 2025 the federal gift tax exclusion increased to $19,000.

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