maglib
Level 10

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.

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I am NOT an expert and you should confirm with a tax expert.