Does Arkansas allow deductions from 529 Plans?

[scott-christie]

Unable to enter data on AR1000ADJ Line 2.  Any suggestions?

[LISA0589]

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[Hal_Al · Accepted solution]

Arkansas allows a deduction for a contribution to a 529 plan; $5,000 per parent ($10,000 joint).  It goes on line 2 of form AR1000ADJ (schedule of adjustments) then to line 22 of the tax form (AR1000F)

There is no deduction for a 529 plan contribution, on the federal return. The tax benefits come later when the money is withdrawn. Most states do have a deduction for putting money into a 529 plan. If your state is one of them, it will come up during the state interview. For a list see:

http://www.finaid.org/savings/state529deductions.phtml  (scroll down the page) .     

As for distributions, an exclusion is allowed on the federal return for qualified expenses. So, only the taxable portion would transfer to the AR return as other income

[odatcindy]

Turbo Tax is not asking me about my 529 contributions on my State Tax Return. Why is that?

[odatcindy]

I'm unable to find AR1000ADJ, Line 22 of tax form AR1000F. How do I locate this on Turbo Tax?

[Hal_Al]

You have to pay the TurboTax prep fee to get access to the forms