Question

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

Forum|Forum|5 years ago
February 6, 2021
4 replies
0 views

I should be able to deduct up to $4000 per account that I contributed during the previous year to a Virginia 529 Plan.

TurboTax Deluxe Online

Employee

As the state updates forms, they are incorporated into the system. Please check Forms Availability for your method of tax preparation. When able, follow these steps:

Return to your VA state return
Continue through until you reach Here's the income that VA handles differently
Scroll down to Education
Locate VA College Savings Prepaid Tuition
Start
Have you ever had a VA 529?
Select Yes
Continue
Tell Us about your VA 529
Select I made a payment or contribution in 2020
Continue

Yes, the VA 529 is an excellent plan for tax benefits with its allowances. When the money comes out, you will get a 1099Q. See

Guide to IRS Form 1099-Q: Payments from Qualified ...

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T

tavennerfb

TurboTax doesn't show me "things that are handled differently by Virginia," and so it doesn't allow me to enter my contributions already made in 2020, just if I want to direct some of my refund to a 529.

Does the fact that I took a standard deduction on my Fed return make a difference? TurboTax doesn't indicate that.

DMarkM1

No, taking the federal standard deduction will not affect the option to enter the VA 529 plan contributions.

Click "State" in the left hand menu
Click "Continue" at the bottom of the page; the next page should be the "Virginia ready to check" page
Click "Edit" for the "Income" topic; the next page should be the "Income Virginia handles differently" page

You will either find the "529 Plan contributions" topic at the top in the blue highlighted section where you can "Edit" or down below in the "Education" Section where you can "Start".

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B

BocHarry

It does not appear that VA529 contributions can be entered on VA State Returns for 2021 on TurboTax. I guess we just wait until they correct this.

A

AamilD

You can enter the Virginia 529 Plan Information. Please refer to the image below to see where to input the Virginia 529 Plan information.

Contributions to a Virginia 529 plan of up to $4,000 per account per year are deductible in computing Virginia taxable income, with an unlimited carry forward of excess contributions.

Contributions are fully deductible (not limited to $4000) in the year of contribution for taxpayers at least 70 years of age.

J

jar453

Hmmm -- this "Income that Virignia Handles Differently" page doesn't show up for me at all in Turbotax (part year Resident of Virginia). The form looks totally different.

R

rapscallion83

I am using TurboTax Home and Business 2022 downloaded and running on a Mac.
In prior years, it was easy to see where to enter my 529 information on my VA state return.
This years, however, there is no area to enter Educational Information. A shot of screen is below.

So where do I enter my VA 529 Contributions?

T

tmunoz

In the Virginia state return, from the main screen, click on Edit for the Income section.

Then scroll down to the Education section and click on Edit for Virginia College Savings Prepaid Tuition (Section 529) Plan.

R

rapscallion83

You are referring me to INCOME. That is where I would enter a Distribution from the plan.

That is not what I am trying to achieve. I am trying to enter a Contribution to the plan.

A

alicowling

I am trying to report my 529 contributions for the 2022 tax year. When I look at what Virginia handles differently, Education or 529 are not listed. If I search and jump to form 1099-Q, I am redirected to Personal->Deductions and Credits and asked whose education expenses were paid with the distribution reported on form 1099Q. I did not take a distribution but made a contribution. Does TurboTax Virginia not allow me to report and deduct contributions to a Virginia 529 plan?

A

AnnetteB6

It should. Unfortunately, there is not a direct path or a search term you can use to get to the Virginia 529 plan contributions section of your Virginia return.

The steps and screenshots provided above by TeresaM are the current steps to take for your 2022 tax return.

@alicowling

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