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State tax filing
You can not normally deduct a 529 plan contribution to a different states tax plan.... not every state allows any deductions.
Over 30 states, including the District of Columbia currently offer a income tax credit for 529 plan contributions. In most cases, the taxpayer must contribute to their home state’s 529 plan to qualify for a state income tax benefit. However, there are seven states that offer a state income tax benefit for contributions to any 529 plan and they are:
- Arizona
- Arkansas
- Kansas
- Minnesota
- Missouri
- Montana
- Pennsylvania
In the majority of states, the full amount or a portion of a taxpayer’s 529 plan contribution is deductible in computing state income tax. But, Indiana, Utah and Vermont offer a state income tax credit for 529 plan contributions. Minnesota taxpayers are eligible for a state income tax deduction or credit, depending on their adjusted gross income.
Seven states currently have a state income tax, but do not offer a deduction for contributions: California, Delaware, Hawaii, Kentucky, Maine, New Jersey, and North Carolina.
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