I found an error in the WI state tax software concerning entering contributions to Edvest - WI 529 plan.
WI allows a deduction of up to $3340 per beneficiary for deductions to the 529 plan. When you enter your contribution amount in the software it is supposed to accurately deduct it from your WI income. The figure is transferred to Schedule CS in part 1. Then line 3 is supposed to show $3340 and compare it to your contribution and deduct the smaller of the two however it does not. It seems to put in $3000 so if you contributed more than that you would lose out on part of the deduction.
You can correct it manually by opening Schedule CS but the program should do that automatically.
I-have reported this to TT and hopefully it will be fixed but wanted to give a heads up if anyone has this happen to them.
TurboTax accurately computes the $3,340 deduction limit.
If you are a Wisconsin taxpayer, your contributions to Edvest may be deducted from state taxable income up to a maximum of $3,340 per beneficiary ($1,670 for married filing separate status and for divorced parents of a beneficiary) for the 2020 tax year ($3,380 per beneficiary, and $1,690 per beneficiary for married filing separate status and for divorced parents of a beneficiary for the 2021 tax year).
You do not have to be related to the beneficiary and remember, this tax benefit is per beneficiary so if you’re contributing to accounts for multiple children or grandchildren, you can potentially reduce your Wisconsin taxable income even more. The state tax deadline is April 15 of the following year.
Refer to FAQ: Edvest College Savings Plan
TurboTax has a 100% Accurate Calculation Guarantee. If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.
I beg to differ with you - it did not compute my tax accurately because it did not put $3340 on line 3. It should be a simple calculation and this field should either be populated with $3340 or $1670 for a divorced parent. Those are the only two figures that should be on that line.
In my case it did not show $3340 but $3000 for some reason and so it took the lower if those two and only deducted $3000 instead of $3340.
i shared my screen with TT tech support and demonstrated that as I put different numbers in the contribution amount the same error would occur - $3340 would not show up on line 3.
i tried restarting the program and that did not help. The tech support agent agreed that there is a problem.
Thank you very much for the reply! I couldn't get an answer from TurboTax online or over the phone so I appreciate your help. One more question - I'm using TurboTax Online which does not appear to allow me to open up the Schedule CS and edit it. Are you using the downloaded/CD version? Thanks again.
Yes I am using the downloaded program and I’m not familiar with the online version. I would think there would be a way to open a form.
Is there a help menu where you can search for ‘Open a form’?
I am using the downloaded version and am it familiar with the online version but I would think they should have the same features.
Is there a help menu where you could search for “Open a form”? Maybe someone on the forum can advise how to do it on the online version
Thank you again for the help. I was able to speak to TurboTax customer service and they allowed me to switch to the desktop version where I'm able to fix the form directly. Thanks!