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m123
New Member

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

I should be able to deduct up to $4000 per account that I contributed during the previous year to a Virginia 529 Plan.
14 Replies
AmyC
Expert Alumni

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

As the state updates forms, they are incorporated into the system. Please check Forms Availability for your method of tax preparation. When able, follow these steps:

  1. Return to your VA state return
  2. Continue through until you reach Here's the income that VA handles differently
  3. Scroll down to Education
  4. Locate VA College Savings Prepaid Tuition
  5. Start
  6. Have you ever had a VA 529?
  7. Select Yes
  8. Continue
  9. Tell Us about your VA 529
  10. Select I made a payment or contribution in 2020
  11. Continue

Yes, the VA 529 is an excellent plan for tax benefits with its allowances. When the money comes out, you will get a 1099Q. See 

Guide to IRS Form 1099-Q: Payments from Qualified ...

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tavennerfb
Returning Member

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

TurboTax doesn't show me "things that are handled differently by Virginia," and so it doesn't allow me to enter my contributions already made in 2020, just if I want to direct some of my refund to a 529.

 

Does the fact that I took a standard deduction on my Fed return make a difference?  TurboTax doesn't indicate that.

DMarkM1
Expert Alumni

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

No, taking the federal standard deduction will not affect the option to enter the VA 529 plan contributions. 

 

  1. Click "State" in the left hand menu
  2. Click "Continue" at the bottom of the page; the next page should be the "Virginia ready to check" page
  3. Click "Edit" for the "Income" topic; the next page should be the "Income Virginia handles differently" page

 

You will either find the "529 Plan contributions" topic at the top in the blue highlighted section where you can "Edit" or down below in the "Education" Section where you can "Start".  

 

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BocHarry
Level 1

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

It does not appear that VA529 contributions can be entered on VA State Returns for 2021 on TurboTax.   I guess we just wait until they correct this.  

AamilD
Expert Alumni

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

You can enter the  Virginia 529 Plan Information. Please refer to the image below to see where to input the Virgin 529 Plan information.

 

 

Contributions to a Virginia 529 plan of up to $4,000 per account per year are deductible in computing Virginia taxable income, with an unlimited carry forward of excess contributions.

Contributions are fully deductible (not limited to $4000)  in the year of contribution for taxpayers at least 70 years of age. 

 

 

jar453
Level 1

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

Hmmm -- this "Income that Virignia Handles Differently" page doesn't show up for me at all in Turbotax (part year Resident of Virginia).  The form looks totally different. 

AmyC
Expert Alumni

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

It is working in both desktop and online versions for part-year resident. I double-checked and it flowing correctly. You may have something stuck in your browser, your form may have a stuck spot. You may want to try cache and cookies first to see if that works.

For stuck information follow these steps:

  1. Delete the form, see How to Delete 
  2. Log out of your return
    1. Try one or more of the following:
      • Sign in using a different browser.
      • Sign in using a different device.
  3. Log back into your return.
    • Enter the form again.
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jar453
Level 1

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

Thank you! I have tried multiple browsers and devices, deleting and re-populating the form. It skips over the relevant field each time.  I've had a few calls with TurboTax customer service now and they weren't able to help either and said maybe the form needs to be updated. 

 

I think I'll just file it manually. 

BocHarry
Level 1

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

I am glad that I am not the only one finding this serious flaw in not being able to enter VA529 contributions for to get the deduction for the 2021 VA Individual tax returns.  We have used Turbo Tax for all of the years in which we have been making VA529 contributions and this is the first year with this error in place.  Let’s see if it might be corrected before we all divert to another tax filing approach.  

Cass0317
Intuit Alumni

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

First we need to confirm you are in a TurboTax product that supports credits. Please see the links below to see if the product you are using will support this:

 

@BocHarry

 

t8rboguru2222
New Member

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

I couldn't find a normal entry to do this either.  However, you can enter this by:

  1. Go directly to Forms (click on the Forms icon on the top right) 
  2. On the left hand navigation pane, select Virginia -> Individual -> Deductions Stmt
  3. Enter in all the values you need in the Virginia529 Plan Smart Worksheet.  If you have entries from previous years, TurboTax is still smart enough to fill it in for you.

To know don't know what to enter, looking at your printed copy of the pervious year's return might help.  Good luck!

wpgilbert
New Member

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

I have tried repeatedly to enter my $4000 contribution to my 529 plan which I have for my grandaughter.  First, I can't enter the broker account number which is requested, and , second, when I finally left that blank and proceeded, turbotax failed to show the deduction in my tax liability for Virginia income tax.  Something is messed up for the 2021 version of Turbotax in the this area!!   I had no problems with entering 529 info in my 2020 version of Turbotax.   What is going on???

ghudhud
New Member

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

Thanks that worked

ghudhud
New Member

How do I enter my contribution to a Virginia 529 plan to get a deduction on my Virginia State taxes?

Thank you, I was able to add it directly in the forms/ Deduction statement

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