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I opened and Education Savings account for my Grandchildren - can the amount be used to reduced income and where do I enter it on Trubo Tax

976

Expert Alumni

Mar 20, 2020 10:06:24 AM

No, contributions to an Education Savings Account are not deductible on the federal tax return. The amounts grow tax free, but that is the only federal tax benefit.

Some states have credits or deductions for these plans, so watch for that when you do your state return.

Level 15

Mar 20, 2020 10:52:54 AM

For a list of states, that allow a deduction, see:

http://www.savingforcollege.com/compare_529_plans/index.php?page=compare_plan_questions&plan_question_ids[]=437&order_by=plan_question_437

Some will only allow the parents a deduction.

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