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grandparent deduction for 529 contribution

Daughter is owner of 529
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2 Replies

grandparent deduction for 529 contribution

Generally only the account owner can get the deduction but some states do allow a contribution deduction by a non owner. I believe Indiana and Utah allow that but you would have to check. 

Hal_Al
Level 15

grandparent deduction for 529 contribution

Which  state?  Ohio allows non owner deductions. 

 

There is no federal deduction for making a contribution to a 529 plan, so there is no place in the TurboTax (TT) Federal program to enter it.  TT will not be tracking your contributions.

 

 Some states allow a deduction on the state return. If your state is one, it will come up in the state interview; usually in the "Here's how (your state) handles income differently" section.  

 

Per Google A.I. Most states allow anyone, including non-account owners (like grandparents or friends), to deduct 529 contributions from their state income taxes, provided they contribute to the state's own plan. Tax parity states (AZ, AR, KS, ME, MN, MO, MT, OH, PA) allow deductions for contributions to any state's plan.

 

 

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