topic Take back credit? in After you file

Take back credit?

pk041951 — Sat, 01 Jun 2019 01:43:22 GMT

I know that North Carolina did away with its state credit for contributing to 529 college plans in 2014. I now want to transfer these accounts to another state. Do you think North Carolina will want take back the $400 credits for each of the 3 years I contributed to these plans?

the contributions were an NC income deduction, not a cred...

SteamTrain — Sat, 01 Jun 2019 01:43:24 GMT

the contributions were an NC income deduction, not a credit.

Never heard of NC trying to get those $$ back for transferred accounts...not that it could never happen, but just haven't ever heard of it.

It would require that NC529.org would report those transfers to the NCDOR....you could always call the NC529 administrators and ask. They do report actual withdrawals of cash to you to the Feds...but transfers?

If you claimed a credit for years when it was not permitt...

SweetieJean — Sat, 01 Jun 2019 01:43:28 GMT

If you claimed a credit for years when it was not permitted, NC will likely assess you at some point.

Sorry, let me rephrase. The 3 years I contributed to the...

pk041951 — Sat, 01 Jun 2019 01:43:30 GMT

Sorry, let me rephrase. The 3 years I contributed to the plan were 3 years when the credit was allowed, so I took a legitimate deduction. However, now I want to transfer that account elsewhere. Do you think the state of North Carolina will want those credits back?