Nishnick
New Member

ESA

I opened and Education Savings account for my Grandchildren - can the amount be used to reduced income and where do I enter it on Trubo Tax

JulieS
Employee Tax Expert

Education

No, contributions to an Education Savings Account are not deductible on the federal tax return. The amounts grow tax free, but that is the only federal tax benefit.

 

Some states have credits or deductions for these plans, so watch for that when you do your state return. 

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Hal_Al
Level 15

Education

 For a list of states, that allow a deduction, see:

http://www.savingforcollege.com/compare_529_plans/index.php?page=compare_plan_questions&plan_questio...

 

Some will only allow the parents a deduction.