TurboTax is incorrectly limiting PA 529 contribution on Schedule O PA-40 to $18,000. The correct limit is $36,000 if filing jointly.

Forum|Forum|1 year ago
March 13, 2025
1 reply
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I'm trying to enter 34,000 and Turbotax errors out on the state review telling me it must be reduced. It even shows the state form which says (Limit $18,000 per beneficiary, per taxpayer-spouse). Thus the limit is $36,000 if filing jointly. Confirmed on PA 529 website: "Effective January 1, 2024, the federal annual gift tax exclusion will increase to $18,000 for a single individual ($36,000 for married couples filing jointly)." https://www.pa529.com/pdf/gsp/GSP-Disclosure-Statement.pdf

Best answer by AmyC

I took a look at your tax return and see the issue. The issue is limited on a per person basis. Once you remove the full amount from one person and split it between you, the program will properly compute.

I have added screenshots of what you have and what you need to do.

Change to:

MayaD

For 2024, Pennsylvania taxpayers can deduct up to $18,000 in contributions per beneficiary per year ($36,000 if married filing jointly, assuming each spouse had income of at least $18,000) from their Pennsylvania taxable income for the purposes of determining their state income taxes.

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reustmdAuthor

Sounds like we agree, I don't know how to convince turbotax to fix this.

SusanY1

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

If possible please post a screenshot of the token number to avoid having it caught in privacy filters.

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