Question

MD 529 State Contribution

Forum|Forum|6 years ago
January 31, 2020
1 reply
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I have a question about claiming my 529 contributions after receiving the MD State contribution. According to the State of Maryland webpage,

"If you receive a State contribution for any Account in a given year, you are not eligible in that year for the income deduction on your State taxes for contributions that you made to that or any other College Investment Plan Account."

This quote leads me to believe I should not be eligible to claim a deduction on my taxes. However, when going through the process on Turbo Tax, there is not an option to skip the question about entering the amount of money I put into the 529 account to not claim the tax break since MD has contributed to the account.

Thank you for your assistance.

J

JotikaT2

You will need to enter this information in the state interview questions under "Education".

There is a section titled "Maryland College Investment Plan, State Contribution Subtraction". You will adjust your Maryland contribution here for the amounts included on the Federal Income.

529 MD adjustment

This entry will update your Maryland to not take the deduction as you also received the contribution.

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S

SKjames

Employee

Where in the federal return would you declare/list said state contributions to MCIP so that they are included under your federal income? (I've looked for several years and never found such an option.)

A

AnnetteB6

Contributions to state 529 plans, such as the Maryland College Investment Plan, are not deductible on your Federal tax return. Therefore, you do not enter those contributions anywhere except in your state return, where the contributions may be deductible.

This is applicable for all states with a 529 plan, not just Maryland.

@SKjames

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