topic Colorado 529 plan deduction in Deductions & credits

Colorado 529 plan deduction

rrob50 — Sat, 21 Mar 2020 23:57:38 GMT

Where do I enter my contribution on Turbotax for my Colorado 529 plan.

Re: Colorado 529 plan deduction

DavidS127 — Sun, 22 Mar 2020 12:52:05 GMT

During the TurboTax state tax return interview you subtract payments or contributions to a qualified state tuition program administered by College Invest. There is a section to enter subtractions from federal taxable, and 529 plan payments or contributions will be one of the categories you can enter.

Re: Colorado 529 plan deduction

rrob50 — Tue, 24 Mar 2020 14:46:55 GMT

It helped. I had to manually enter the contribution on to the turbo tax form itself, because there was no way to enter it on the interview function in turbo tax.
thanks

Re: Colorado 529 plan deduction

ukakinada — Sat, 27 Jun 2020 22:44:38 GMT

I am frustrated and disappointed with the lack of support for known deductions like state 529 contributions.

I wonder how many other which I am not aware are being missed. We are paying so much for Federal and additional amount again for State, IMHO should expect better.

Someone, please please please post the instructions for the following

- 529 contributions for Illinois and Colorado

- K -12 residential school expenses for Illinois ( Illinois Math and Science Academy )

Re: Colorado 529 plan deduction

ukakinada — Sat, 27 Jun 2020 22:45:01 GMT

It did not help

Re: Colorado 529 plan deduction

DavidS127 — Sun, 28 Jun 2020 19:10:48 GMT

During the TurboTax state tax return interview you subtract payments or contributions to a qualified state tuition program administered by College Invest. There is a section to enter subtractions from federal taxable income, and 529 plan payments or contributions will be one of the categories that can be subtracted. Look for a question about qualified tuition program or College Invest contributions.

Illinois permits a "Schedule M Subtraction" for contributions to the Bright Start and Illinois Prepaid Tuition Program up to a combined total of $10,000 ($20,0000 MFJ). According to the instructions, contributions to other plans cannot be subtracted.

If your 529 plan contributions were Bright Start and/or the Illinois Prepaid Tuition program, they can be deducted in the "Illinois subtractions" section of your Illinois state return.

See this Illinois Revenue website for more details.

There is a credit for Illinois K-12 education expenses, and that credit should show up in a section or question on Credits when completing the Illinois state tax return questions.

Re: Colorado 529 plan deduction

gwt1 — Fri, 01 Apr 2022 15:25:21 GMT

I e-filed my Colorado return using Turbo Tax Home & Business 2021. When I went to Revenue Online Colorado, and looked at the uploaded return, I discovered that the 529 contribution that I had entered was missing from the uploaded copy. I checked my desktop and it is included there, in both pdf and printed, as well as in the Turbotax application. I amended my Colorado return online and added this on line 8 of 2021 DR 0104AD, as well as checked the box for State Sales Tax refund on 2021 DR 0104 line 32 which was somehow omitted in the upload process. I verified all the other lines on DR 0104 match the local version on my desktop. I'm now waiting to see if this amended return is accepted. Have others seen this issue?

Re: Colorado 529 plan deduction

AmyC — Fri, 01 Apr 2022 19:05:06 GMT

@gwt1 Thank you for letting us know. We are not aware of an issue. I will note your issue and we will see if it turns out to be a one time thing or more to the story.

Re: Colorado 529 plan deduction

gwt1 — Fri, 01 Apr 2022 19:15:00 GMT

Thanks Amy. I got a smaller refund last year than I was expecting, but I didn't check into it at the time. After seeing this issue this year, I looked back at last year's uploaded return and sure enough, the 529 contribution was not recorded on Revenue Online Colorado. I think this might be more than a one time situation.

Re: Colorado 529 plan deduction

Ouray Don — Wed, 15 Mar 2023 18:49:26 GMT

Where do I enter my 2022 Colorado 529 plan contributions in the Turbo Tax Colorado Tax form

Re: Colorado 529 plan deduction

Ouray Don — Wed, 15 Mar 2023 18:54:29 GMT

I found it. The 529 plan deduction is under income that colorado handles differently rather than under tax credits.