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I contributed more than the annual maximum into my dependent's PA 529 plan in 2017. Turbo Tax lets me enter the higher value and does not warn me that the value exceeds the annual maximum. I don't want to miss out on a potential refund, so do I enter the actual amount contributed or do I enter the maximum allowable contribution?
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If your actual contributions exceeded the maximum allowed contribution, you should enter the maximum contribution. The program allows you to enter the actual amount during the initial interview, but it will flag it as over the maximum during the error review and force you to reduce the amount on Schedule O.
Here is a sample of the error you will get when you enter more than the maximum -
"TP 529 Contrib Amount-1 must be reduced. The total contribution cannot be more than $14000.00 per beneficiary. The taxpayer's contribution of $20000.00 exceeds $14000.00"
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