529 Deduction MO Resident KS Income

[mlbogert]

I am a Missouri resident who works in Kansas (wife works in Missouri).  We have three Missouri Most-529 accounts for our children (I am the account owner for all three).  I know both KS and MO have parity for 529 contribution deductions for 529 accounts in other states.  My question is since I personally have all KS income and am the 529 account owner, am I required to take the deduction for 529 contributions from my KS income taxes or am I able to choose which state to take the deduction from, since my wife's income is from MO?  I assume I cannot take the deduction from both state's income taxes, but I want to know if I am able to choose which state I want the deduction to apply toward.

[Irene2805 · Accepted solution]

Yes - You can choose on which state return you want to take the deduction.  [You can't take the deduction from both states.] 

Both KS and MO allow deductions for contributions to that state's or another state's 529 plan.  Kansas allows a deduction for 529 contributions, even on a nonresident return.

The maximum annual exempt contributions are:

• MO -- $8,000 for single individuals or $16,000 for married couples filing a combined return. 
• KS --  $3,000 per student (beneficiary); or $6,000 per student (beneficiary) if your filing status is married filing joint.