529 contributions from family

[garrettkaste]

I am in Indiana and have a CollegeChoice 529 Direct Savings Plans for my children. The account webpage only tells me the total contributions made, but contributions were made both by me and by some family members. When Turbo Tax asks for the contribution amount, should it be the total, or only the portion made by me?

[AnnetteB6 · Accepted solution]

When you are entering the contribution amount on your Indiana tax return, you should only include the portion of the contributions that were made by you.  

If another family member makes a contribution, then they can claim the contributions that they made on their Indiana tax return.

[garrettkaste]

Thank you!

I now recall another source of contribution. I sold two weeks of vacation time back to my company, which they then deposited the after tax amount to my children’s 529 accounts. Is this considered my contribution, or does my company get to claim these tax benefits?

[Hal_Al · Accepted solution]

Q.I sold two weeks of vacation time back to my company, which they then deposited the after tax amount to my children’s 529 accounts. Is this considered my contribution, or does my company get to claim these tax benefits?

A.  That's considered your contribution, since the money was  included in box 1 of your W-2. You essentially paid it.  In addition to your W-2, you may want to save a copy of your pay stub for documentation. 

[garrettkaste]

Thank you!