No place to put in Indiana 529 for Turbotax 2022

[alabenne7148]

Why there is no place to put in the 529 contribution for Indiana in Turbo Tax 2022.  Is there something missing in the tax forms?

[Hal_Al]

There is no federal deduction for making a contribution to a 529 plan. Some states allow a deduction on the state return. If your state is one, it will come up in the state interview; usually in the "Here's how (your state) handles income differently" section.

For  Indiana it’s at  credits and taxes. Scroll down and select Indiana CollegeChoice 529 Plan.

[iu1660]

Hi, can you show me a screen shot or explain more?  I don't see this option for me.

[BrittanyS]

The credit for Indiana 529 is found under credits and taxes.  The screenshot you posted appears to be in the income screen.  You can access the credit by following these steps:

1. Click Your State Returns
2. Click Edit next to Indiana
3. Continue through the return until you see "Tax a look at Indiana credits and taxes."
4. Scroll down to Education, Click Start next to Indiana CollegeChoice 529 Plan (see screenshot below)

@iu1660 

[iu1660]

Thank you!  Found it 🙂

[tdejong]

When I enter my Indiana CollegeChoice 529 contributions it's not calculating the 20% credit for me.  Did it work for you?

[AmyC]

You may not qualify for the full 20%.  Check that you have a tax liability to handle the full credit along with the rules. The rules from IN GOV are:

Beginning with the 2023 tax year, the amount of the credit is the lesser of the following:

• 20% of the amount of all contributions the taxpayer makes to an account(s) of the Indiana CollegeChoice 529 Education Savings Plan during the taxable year, including those designated for K-12 tuition; Indiana Department of Revenue • Income Tax Information Bulletin #986

• the amount of the taxpayer’s adjusted gross income tax liability for the taxable year

reduced by the amount of credits allowed under IC 6-3-1 through IC 6-3-7; or

• $1,500 for single individuals and married individuals filing a joint return.

•  This is $750 for married individuals filing a separate return.
• In the case of a married individual filing a separate return, the credit is permitted only for that individual’s contributions. The other spouse’s contributions may not be claimed by the separately-filing individual.

Any taxpayer who makes a contribution to an Indiana CollegeChoice 529 Education Savings Plan is eligible for the tax credit even if the taxpayer is not the owner of the account. 

@tdejong 

[playinchess]

One more thing new for 2023 tax year is that you may make contributions in the current year (e.g. 2024) and attribute them to the prior tax year (e.g. 2023) in order to generate tax credit for the prior tax year, up to the maximum annual amount.  This is analogous to Federal rules regarding IRA contributions by year.

[erin0287]

I also had trouble finding this and found it frustrating initially, but it was there in the State section. 

[AmyC]

Please select 529 Plan under Education.

@alabenne7148