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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.
3 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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