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Level 1
posted Mar 5, 2020 11:09:30 AM

529 Plan

I made 529 contributions to my grandsons in Virginia.  I live in Virginia. Can these contributions be deducted on my VA tax return?

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1 Best answer
Expert Alumni
Mar 5, 2020 11:30:50 AM

Yes, you can deduct up to $4,000 per beneficiary per year from your Virginia income for contributions to any of the Virginia sponsored plans (Invest529, Prepaid529, and College America.)  

 

These are entered into TurboTax in the Virginia program on the screen that will read Here's the income that Virginia handles differently across the top.  Click Start beside Virginia College Savings Prepaid Tuition (Section 529) Plan to enter the contributions (even if you didn't use the prepaid plan specifically, this is where your contribution will go.)  

 

Here is what you can expect this to look like:

 

3 Replies
Expert Alumni
Mar 5, 2020 11:30:50 AM

Yes, you can deduct up to $4,000 per beneficiary per year from your Virginia income for contributions to any of the Virginia sponsored plans (Invest529, Prepaid529, and College America.)  

 

These are entered into TurboTax in the Virginia program on the screen that will read Here's the income that Virginia handles differently across the top.  Click Start beside Virginia College Savings Prepaid Tuition (Section 529) Plan to enter the contributions (even if you didn't use the prepaid plan specifically, this is where your contribution will go.)  

 

Here is what you can expect this to look like:

 

Level 1
Mar 8, 2020 4:02:42 AM

Thank you …..

Level 15
Mar 8, 2020 4:53:36 AM

Yes. Contributions to a Virginia 529 plan of up to $4,000 per account per year are deductible in computing Virginia taxable income, with an unlimited carry forward of excess contributions.

Contributions are fully deductible (not limited to $4000)  in the year of contribution for taxpayers at least 70 years of age. 

Contributions from a non-owner are deductible by the account owner and not by the non-owner/contributor.