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529 Plan Closed Account
Hi all, question on closing the 529 plan and taking the final withdrawals. So we had money left after using it for child's college. The earnings portion was about $20,000. My question is on the state of Illinois tax return. As the owner of the 529, our deposits over the years when we were contributing to the plan were deductible in Illinois but now the earnings portion I suspect we have to pay state taxes on. There is a question on the Illinois tax return about income received from 529s. Since that amount is already included in my federal return do I need to add it anywhere on the Illinois return? There are two sections that are confusing pertaining to the distribution and income for 529s. Any help is appreciated. Thanks
March 11, 2023
5:38 PM