Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 2, 2025 7:17:03 AM

For Illinois State Taxes, Turbo Tax did NOT prompt me for my deductible donation to 529 Plan, Turbo Tax only asked about 1099-Q Form which is distribution?

0 1 724
1 Replies
Expert Alumni
Mar 2, 2025 8:02:29 AM

Because 529 contributions are not deductible on a federal return, these contributions are entered in the state interview. Indiana allows taxpayers who contribute to an Indiana529 account may be eligible for a 20% state income tax credit of up to $1,500 each year ($750 for married filing separately) on their contributions.

 

In TurboTax, review the Indiana credits & taxes section of the state. Click Start next to Indiana 529 Education Savings Plan Credit under the Education section.

 

 

Indiana 529 Tax Credit

 

@eknappe