DavidS127
Expert Alumni

State tax filing

Yes, there are couple of tax benefits for 529 plan contributions in MN.

 

There is a non-refundable credit of up to $500 available for certain residents.  The amount of the credit is 50% of the contribution up to $500, but the credit begins to phase out at $78,340 of adjusted gross income (AGI), and is completely phased out at AGI of $103,340 or $166,010 married filing jointly.

 

If you do not claim the credit, you can subtract from your federal adjusted gross income (AGI) the "net contributions to qualified accounts" up to $1,500 or $3,000 for married filing jointly.  

 

These options will be available to you in the MN state tax return interview.

 

 

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