My wife and I both live in DC and each contributed $4,000 to separate 529 plans for our child (i.e., a total household contribution of $8,000). We're filing as "married filing separately on the same return," as that seems to give us the lowest overall state tax. It looks like Turbo Tax is limiting us to a total of $4,000 in 529 contribution deductions, not $8,000. I know that if married filing jointly, we could deduct a total of $8,000 in 529 contributions (but it overall doesn't make sense to change the filing status). I gather for some reason that doesn't apply to married filing separately on the same return? I'd appreciate if anyone has a good explanation for this, as we might change our 529 contributions going forward. Thanks!
