I have a Virginia Invest529 account set up for my daughter. I am the account owner. My daughter is the beneficiary.
If my brother makes a contribution to that account, does he get the Virginia state tax deduction as the contributor? Would I get it as the account owner? Or would there be no deduction?
I'm finding conflicting information.
In the "State tax deduction or credit for contributions:" section of this post, it indicate that the deduction would go to the account owner - https://www.savingforcollege.com/529-plans/virginia/invest529
However, looking at 58.1-322.03.7.a of the Virginia tax code (https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-322.03/) I saw this line:
"A deduction shall be allowed to the purchaser or contributor for the amount paid or contributed..."
But then, the code goes on to define a contributor as "a person who contributes money to a savings trust account established pursuant to this chapter on behalf of a qualified beneficiary and who is listed as the owner of the savings trust account." (https://law.lis.virginia.gov/vacode/23.1-700/)
So it does not look like my brother would be eligible to make a deduction on his taxes for a contribution to an account he does not own. He could set up an account with him as the owner and my daughter as the beneficiary to capture the deduction on his taxes.
But my question is what happens to the deduction if he makes a contribution to the account I set up?
Thanks for your help with this!
