topic Can Massachusetts residents deduct gifts to a 529 plan for a non dependent grandchild in State tax filing

Can Massachusetts residents deduct gifts to a 529 plan for a non dependent grandchild

Bill4953 — Thu, 06 Jun 2019 05:57:14 GMT

Not for 2016, however, effective January 1, 2017 through...

DDollar — Thu, 06 Jun 2019 05:57:17 GMT

Not for 2016, however, effective January 1, 2017 through the 2021 tax year, contributions to one of the two Massachusetts 529 plans of up to $1,000 per year by an individual, and up to $2,000 per year by a married couple filing jointly, are deductible in computing Massachusetts taxable income. There are no restrictions on who the beneficiary can be, so a grandchild would qualify.

Stumbled on this answer and I have a follow-up. Are there...

thekapells — Thu, 06 Jun 2019 05:57:19 GMT

Stumbled on this answer and I have a follow-up. Are there restrictions on who the account owner can be? If I create a Massachusetts 529 account owned by me, and benefitting my child, can my Massachusetts-resident parents-in-law make contributions deductible on their Massachusetts taxes? Or would we have to make an account owned by them?

Thanks!

@thekapells You posted in an old answered thread from las...

mesquitebean — Thu, 06 Jun 2019 05:57:20 GMT

@thekapells
You posted in an old answered thread from last year, so your question wasn't seen and became "orphaned." I'll see if I can attract someone to this thread familiar with Massachusetts. If you don't get a response, you can always start your own new thread, and it will show up in the forum as needing help.

@Zbucklyo Are you able to assist this Massachusetts user when you are next in the forum? Thanks!

You would not need to set up a separate account for grand...

DDollar — Thu, 06 Jun 2019 05:57:22 GMT

You would not need to set up a separate account for grandparents to contribute to. They can contribute to a Massachusetts account owned by you (or anyone else) and take the state tax deduction.

@epo39b Thanks; noted for the future that it's best to st...

thekapells — Thu, 06 Jun 2019 05:57:23 GMT

@epo39b Thanks; noted for the future that it's best to start a new thread.

@TurboTaxDavidD Thanks!