To enter your Illinois 529 Plan contributions for your son's education in TurboTax, please follow these steps:
- In your return, select State Taxes tab
- Proceed through the state interview section for Illinois, answering all questions on residency and income, until you arrive at a page entitled "Here's the income that Illinois handles differently"
- Under Education, click on Start button for "College savings and prepaid tuition plan contributions"
- On next page, "College Savings and Prepaid Tuition Plans", enter your 2016 529 plan contribution amount in the box for "Bright Start College Savings Pool" and click on Continue button
- Finish the rest of the interview
If the Distribution doesn’t exceed the amount of the student's qualifying expenses, then the distribution is not Taxable and you don't have to report any of the distribution on your tax return.
The IRS does not request any additional information to substantiate whether or not your Distribution exceeded your actual qualified expenses. Nevertheless it would be wise to keep a good record of these expenses just in case your return gets picked up for examination.
If the Distribution exceeds these expenses, then you must report the earnings on the excess as "other income" on your tax return.
When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. ... On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return.
questions for Illinois
Families grow and change all the time. Now that you have a new dependent, you may be able to save more on your taxes as a family. While there are qualifications for who you can claim as a dependent, we’ll help figure that out and make sure you get all of the advantages you deserve. Here are some things to note as you get started on your return.
1. You can claim a child born anytime in 2023 on your 2023 taxes
Assuming they meet all the other dependent qualifications, you can claim a child born anytime in 2023 on your 2023 taxes. When we ask how many months your newborn lived with you, always answer The whole year, even if your baby was born on the last day of 2023. Answer the same for any health care coverage questions if your newborn was insured from the date of birth, because you’re able to claim the child for the entire year, no matter when they were born in 2023.
2. You can claim adult dependents you support financially, even if they don’t live with you
If you financially support a relative, you can claim them as a dependent, even if they don’t live with you. They have to meet certain criteria, but if you cover 51% or more of their finances, you can add them to your list of dependents. And if you support an adult dependent that isn’t actually related to you by blood or marriage, then they must have lived with you for the entire year in order for you to claim them. Just tell us about all of your dependents and we’ll determine if they qualify.
3. You can claim certain credits
Fortunately, there are many credits available to help families with dependents. The Child Tax Credit and Credit for Other Dependents, can help with your children and relatives. The Child and Dependent Care Credit, is available to you if you paid for their care while you worked. You can also claim medical and education expenses you paid for your dependents. We’ll show you all of these as you go through TurboTax and help get you the refund you deserve.
4. Consider starting a state-sponsored 529 plan to save for college
If you have a new child, you might want to start a 529 plan to save for their future education expenses. Sponsored by your state, these plans are a way to put away money for your child’s tuition and college expenses. And when it comes time to withdraw for their education, you won’t pay income tax. Ask your bank or brokerage for more info on your state’s 529 plans and how to start one.
