This question is in relation to AZ state tax.
I have two daughters and I front loaded their 529 plan with 75K and 50K in 2021. While entering details of 529 contributions in AZ state tax, shall I enter the actual contribution amounts (75K and 50K) or should I enter 4K each as 4K is the max deduction per 529 account in AZ ?
When I enter actual contribution amounts, TT complains and shows below message while validating the state taxes.
If I enter 4K in 2021 as suggested by TT, then my question is how can I claim deductions for next 4 years as front loading allows deductions for 5 years. Next year (2022 and onwards) I will not be contributing more amounts to 529, so in that case, will I still enter 4K for next 4 years (2022 to 2025) ? Please suggest the right way to enter contribution for AZ and claim the deductions for next 4 years too.
