Does Wisconsin allow you to deduct the amount you contributed to 529's?

[PSK9784]

We contributed more than $2,400 but, that's all it's stating as the deduction amount.

[ThomasM125]

You can deduct up to $3,100 from your Wisconsin income for each account you establish for a qualifying 529 plan participant. It may be that your deduction is limited based on your taxable income.

[rgkleist]

I contributed $500 for each of my three grandchildren and got a deduction of less than $100.  My taxable income is less than last year when I got $1500 total.  Is there a problem here?

[KathrynG3]

I recommend reviewing the entries. First, log completely out and close the browser. Re-open in Chrome and go to the State interview for Wisconsin.

The contribution should be entered during the Wisconsin interview and will not reduce Wisconsin income to less than zero. Be sure to indicate the contribution for 2020 for each beneficiary at the bottom of each screen before clicking Continue With My Return. 

From Here's the income that Wisconsin handles differently, scroll down to Education and College Savings Account and Start. Be sure to enter these individually for each beneficiary and select B - Contribution to other's EdVest or Tomorrow's Scholar account. 

This is captured on line 32 Contributions to a Wisconsin State-Sponsored College Savings Program of Schedule M Additions to and Subtractions from Income. Schedule CS must be included, as well. TurboTax will automatically add what is needed.

Click the link for: the most recent information about the Wisconsin 529 College Savings Program limits for 2020.

[rgkleist]

I tried what you suggested and there was no change. When I view the completed Schedule CS it shows a $294 deduction for one child and $0 deduction for the other two.  It is my understanding there should be a $500 deduction on Schedule CS for each of the three children?

[KathrynG3]

Yes, the maximum is per dependent and you should be able to get the full $1,500 unless there is another limiting factor. If your Wisconsin income tax is reduced to zero, then the credit could be limited.

Since this does not appear to be the case, then the next thing to confirm are whether the account beneficiaries were identified separately or to delete Wisconsin completely and re-run the state. Be sure you are using a Windows PC in Chrome, not a Chromebook or iPad.

@rgkleist