For tax year 2017, a new deduction started Jan 2017 for purchases of or contributions made to an account in a pre-paid tuition program or a college savings program established by Massachusetts. The deduction limit is $1,000 for single filers and $2,000 for married couples filing a joint return.
Contributions to a qualified college savings plan are not deductible on your federal return, but may be deductible on your state return. If your state allows a deduction, you will see a prompt to enter your 529 contributions when you get to the credits/deductions portion of your state tax interview.
Follow these steps below for the Massachusetts state interview, to enter 529 contributions.
Just starting to go through the state portion:
- Once you get to the Education Expenses screen in state portion of interview, check the box next to Contributed to a college savings plan established by Massachusetts and then Continue
- The next screen should be Tuition Plan Contribution and you’ll enter total contributions there
Already went through the state and need to go back:
- Log into account, click Take me to my return
- Click State tab to the left and Your State Returns at the top
- Choose Edit next to Massachusetts and Continue
- On the You’ve Finished Your Massachusetts Return screen, click Update next to Adjustments
- Continue through until you reach the Education Expenses screen
- Check the box next to Contributed to a college savings plan established by Massachusetts and Continue
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