The 529 plan contribution is non-deductible on your federal income tax return. Most states offer an income-tax deduction for contributions, but each state also has different rules about who can take the deduction for their contributions.
Illinois taxpayers can deduct contributions made to Illinois 529 plans up to:$10,000 per individual taxpayer and $20,000 for a married couple filing jointly To be deductible for a calendar year you must make the contribution before the end of that given calendar year.
To enter your Illinois 529 Plan contributions education in TurboTax, you mzy follow the below steps:
- Select State Taxes tab
- Proceed through the state interview section for Illinois, answering all questions on residency and income, until you get to at a page "Here's the income that Illinois handles differently"
- Under Education, click on Start for "College savings and prepaid tuition plan contributions"
- On next page, "College Savings and Prepaid Tuition Plans", enter your 2020 529 plan contribution amount in the box for "Bright Start College Savings Pool", If the contribution is a gift, check the box, and click on Continue.
