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March 2, 2025
Question

For Illinois State Taxes, Turbo Tax did NOT prompt me for my deductible donation to 529 Plan, Turbo Tax only asked about 1099-Q Form which is distribution?

  • March 2, 2025
  • 1 reply
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    1 reply

    VictoriaD75
    March 2, 2025

    Because 529 contributions are not deductible on a federal return, these contributions are entered in the state interview. Indiana allows taxpayers who contribute to an Indiana529 account may be eligible for a 20% state income tax credit of up to $1,500 each year ($750 for married filing separately) on their contributions.

     

    In TurboTax, review the Indiana credits & taxes section of the state. Click Start next to Indiana 529 Education Savings Plan Credit under the Education section.

     

     

    Indiana 529 Tax Credit

     

    @eknappe 

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