Question

529 plan in Missouri

Forum|Forum|3 years ago
February 27, 2023
1 reply
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Donations to a 529 education savings plan in Missouri. I enter 5000.00 donation, and my refund doesn't change. Do I only get the credit if I itemize?

A

AnnetteB6

No, the contributions to a 529 plan in Missouri are calculated as an adjustment to your Federal Adjusted Gross Income (AGI), which is the starting point for the Missouri tax return. Itemizing is not required.

If your contribution is not changing your refund amount, there could be other factors in play that have already reduced your Missouri adjusted gross income to zero.

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HebeGBAuthor

You mentioned that it would have to be entered in the federal return before I could claim it in the state return. I looked, and under education in the federal, it only has a place to enter distributions from a 529. Where do I enter the donation? I also don't see where it was subtracted from my federal adjusted gross income.

A

AnnetteB6

I apologize for the confusion. The information about your contributions is not entered into your Federal tax return. The Federal AGI amount is transferred over to the Missouri tax return as the starting point for the Missouri return.

The 529 contribution is only entered into the Missouri return in TurboTax and is included as a subtraction from your income to determine your Missouri adjusted gross income. If your Missouri adjusted gross income is reduced to zero by other factors, then entering the 529 contributions will not affect your refund amount.

If you are using TurboTax Online, take a look at your Missouri tax summary using the following steps while you are in the Missouri return:

In the navigation area on the left side of your screen, click Tax Tools to expand your choices
Click Tools, which will open the Tool Center
Click View Tax Summary under “Other Helpful Links…”

The amount of your 529 contributions will be included as part of the line labeled Total Adjustments Additions and Subtractions. Underneath that line, you will see the Missouri Adjusted Gross Income.

@HebeGB

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