Question on wording of 529 contributions in Arizona

[plaid_hippo]

On 2025 Arizona tax return form 140, 529 contribution was $4400, but the deduction limit is $4000.  The phrasing in Turbotax asks how much did you contribute, but in the same paragraph it says the deduction limit is $4000.  When I put in $4400, the amount I actually contributed, the Smart Check brought me back to that point.  When I put in 4000, the deduction limit, it did not complain.  So what should we put in if our contribution amount is over 4000?  I don't care if that overage amount doesn't get deducted - I just don't want the IRS to come knocking thinking I didn't tell them the truth on how much I contributed!  Please help me know which value to put in here!

Thank you!

[DavidD66 · Accepted solution]

If the deduction limit is $4,000 just enter $4,000.  You can't get in any trouble for under reporting a contribution, whether it's deductible or not.  Moreover, it's a state deduction, so the IRS isn't involved as it won't appear on your federal tax return.  If the program doesn't like a $4,400 entry then the program should be more clear and say something to the effect of "Enter your 529 Plan contribution, but not more than $4,000".