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New Member
posted May 31, 2019 10:41:20 PM

Does Arkansas allow deductions from 529 Plans?

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1 Best answer
Level 15
May 31, 2019 10:41:28 PM

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 The tax benefits come later when the money is withdrawn.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

6 Replies
New Member
May 31, 2019 10:41:22 PM

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

New Member
May 31, 2019 10:41:24 PM
Level 15
May 31, 2019 10:41:28 PM

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 The tax benefits come later when the money is withdrawn.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

New Member
May 31, 2019 10:41:30 PM

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

New Member
May 31, 2019 10:41:31 PM

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

Level 15
May 31, 2019 10:41:35 PM

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