If so, is the deduction available if gift is made across state lines?
031217
3 Replies
KenH1
New Member
Jun 5, 2019 5:43:30 PM
Gifts are not tax deductible. If it was over $14,000 you would need to file a gift tax return in most cases. If under $14k, then no reporting is needed.
caseman04
New Member
Jun 5, 2019 5:43:32 PM
Even though it is a contribution to a 529 college savings plan?
KenH1
New Member
Jun 5, 2019 5:43:33 PM
Correct. For federal taxes, 529 contributions are not deductible, even as a gift. But the earnings grow tax free for you. Certain states will allow the deduction, if both you and the 529 plan are in the same state.