TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Question

why does my 529 plan contributions hurt my state refund amount

Forum|Forum|1 year ago
February 16, 2025
1 reply
0 views

When I enter my 529 plan contributions of $7,500 my state refund decreases by $400 instead of increasing by $1,500. In years past it has always increased by the credit amount.

To clarify, which state?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

dunstar20Author

Indiana. Years prior when the max was $5,000 i would always get the 20% or $1,000 added to my state return. This year when I entered it not only did it not increase my return but hurt it. Did this last year as well. Ever since the max contribution has increased to $7500

dunstar20Author

The way I see it is the last 2 years I have been screwed out of $3,000. Or $1,500 a year not including what it deducted from my return.