Hal_Al
Level 15

Education

Receiving a gift and/or making a 529 plan contribution should not result in you having taxable capital gains.  This is clearly an entry error. 

 

As @ThomasM125  said, a gift is not reportable income, or a deduction,  and should not be entered on your tax return. 

 

For most people, you also don't enter a contribution to a 529 plan.  There is no federal deduction for making a contribution to a 529 plan, so there is no place in the TurboTax (TT) Federal program to enter it.  TT will not be tracking your contributions.

 

 Some states allow a deduction, on the state return. If your state is one, it will come up in the state interview; usually in the "Here's how (your state) handles income differently" section.  If you state allows a carryforward, the TT state program will track that.

 

 For a state list of eligible plans, see: https://www.savingforcollege.com/article/how-much-is-your-state-s-529-plan-tax-deduction-really-wort...