MargaretL
Expert Alumni

Deductions & credits

Contributions to your 529 plan are not deductible on your federal tax return. Your investment grows tax-deferred and distributions you pay for college are federally tax-free.

However, many states do offer an income tax deduction for contributions to the college-savings plan.

Since I am not sure which state you live in, please be sure to complete the Turbo Tax interview deductions questions on your state tax return.