Contributions to a 529 plan are not deductible and do not have to be reported on federal income tax returns. This IRS website states:
You can't deduct either payments or contributions to a Qualified Tuition Program (QTP).
Investment earnings in the account are not reportable until the year they are withdrawn. Distributions will be reported on IRS form 1099-Q.
Some states may allow you to deduct all or part of your 529 plan contributions.
Where are you seeing "Your contribution must be included in your federal taxable income."? Please clarify.
@cn944
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