Hi Annette ==
Thank you for your response!!! I'm impressed someone got back to me so quickly.
I figured this out with Francisco's help. The choice of who is making the gift ("contributor") to the 529 matters. We get the full deduction from tax taxable income on our joint return if I list me as making the gifts (I show that I am the contributor), but we don't if my wife makes the gifts (If I show that she is the contributor).
I now read the description of the PA 529 that states PA allows deduction from income according to individual – Taxpayer or Spouse – level of PA income. For our 2022 return, most of our PA income is mine, and only the joint income of interest and dividends is hers (half). Her calculated income was the limit when I had her as contributor.
I have the detail of past tax returns from my tax preparer. We've made gifts to 529s in prior years. In most years, the return shows I'm the contributor.
