Is a 529 contribution deductible in maine

[JohnR1 · Accepted solution]

No - per Page 2 of the 2016 Maine Form 1040ME instructions, for tax years beginning on or after January 1, 2016, the deduction for contributions to 529 plans (formerly found on Schedule 1, Income Modifications) has been repealed:

For tax years beginning on or after January 1, 2016, the following income modifications are repealed: 

• Addition for qualified tuition and related expenses. 36 M.R.S. § 5122(1)(Q). 

• Subtraction for long-term care premiums. 36 M.R.S. § 5122(2)(T). 

• Subtraction for contributions to 529 Plans. 36 M.R.S. § 5122(2)(Y).

Instructions for 2016 Maine Form 1040ME may be found here:

http://www.state.me.us/revenue/forms/1040/2016/16_1040me_book_download.pdf

[jcmccain]

As of the 2023 tax year, you can now deduct up to $1,000 on your Maine return.  As of 2/17/24, TurboTax has not been updated to reflect this though.

https://www.nextgenforme.com/maine-state-tax-deduction/

Per the 1040ME instructions:

Line 8. If your federal adjusted gross income is not more than $100,000
if single or married filing separately or $200,000 if married filing joint or
head of household, enter up to $1,000, per beneficiary, of contributions
made to a Maine or non-Maine qualified tuition program ("529 college
savings plan"). 36 M.R.S. § 5122(2)(YY).

[AmyC]

The program allows the deduction up to $1,000. Please update your program.

[jcmccain]

I’m referring to the Online version, not the desktop version. Any ETA on an update or a place I can check to find out changes that were made?

thanks

[jcmccain]

It took 40 minutes with an Intuit rep (Thank you, Laquetta!), but I found where this needs to be entered:

Chose your Maine return, then 'Adjustments', then on the  "Any Other Income Subtractions" page, pick the top choice "Contributions to Qualified Tuition Programs Subtraction". Too bad this doesn't show up when you search for 529 or FAME!