How do I get the full deduction for Louisiana START contributions for MFJ? TurboTax limits to $2400 per beneficiary when it's really $4800 per beneficiary for MFJ.

[Anonymous]

Louisiana's START (529) website and annual deposits statement clearly state that deposits are deductible from LA taxable income up to $4800 per beneficiary for joint filers.  TurboTax won't let me deduct more than $2400 per beneficiary which is the single filer limit.

[DaveF1006 · Accepted solution]

I worked this through my own program and was able to get the $4800 full deduction for the Start program. Go to your Louisiana State return and see if you answered these questions correctly.

1. When you get to the screen that says College Savings plans-Start program yes
2. Did you have a prior refund from your Start Contribution? If you answer yes and did have a refund, this may limit your contribution.
3. When it asks for the Savings Program Contribution. You will mention that you and your spouse are the beneficiaries AND that you both are the account holders.
4. If you only mention your name, then the contribution will be limited to $2400. 

[branonx]

This problem is still there in 2024 and Turbotax has not fixed it. I can choose that both of us hold the account jointly, but this might delay the refund since LA START accounts cannot be held jointly. i.e. the Turbotax option is incorrect.

[SusanY1]

The language in this question is a bit confusing, but what the joint really does here is just gives you each the contribution.  It will report correctly on the return itself and will not delay the refund. 

@branonx 

[branonx]

@SusanY1 Thanks for this clarification. I already filed our LA state return, and need to file an amended return to get the full deduction. Any suggestions on what should I enter on the attached portion of TurboTax. Our actual contributions were 4800 for each beneficiary but as mentioned earlier, Turbotax calculated only 2400 per beneficiary as tax deductible.

Thanks again!

[SusanY1]

You can just type "failed to include payments to START" or similar in the Explanation statement.  Original is 0 change is the amount that you contributed and that same amount would go in the "correct" column as well. 

[branonx]

Thanks. Since I (rather, Turbotax) included only 2400,  should I say 2400 (original) and 4800 (correct)?

[AmyC]

Your explanation can include those numbers for the amended return. Your actual form will show the $4800 claimed now.