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New Member
posted Jun 4, 2019 8:04:59 PM

Maryland college savings plan deduction

it says I can deduct "$2,500 per taxpayer per beneficiary"...I am filing jointly with my spouse and we have 2 children, each as a 529 plan.  So can I deduct $10,000 (2 taxpayers and 2 beneficiaries)?

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New Member
Jun 4, 2019 8:05:01 PM

If you are the account holder or a contributor, you may deduct up to $2,500 of payments each year from your Maryland State income per beneficiary account. Payments in excess of $2,500 per account can be deducted in future years until the full amount of payments has been deducted. Since you are married you are allowed to deduct up to $5,000 per account, so the possibility does exist for a $10,000.00 deduction on your Maryland Income Taxes if you contributed $10,000 into their accounts.

"For example: If you purchase a 2-year University Plan for your child for a lump sum of $21,000, you can deduct $2,500 per tax year for each of Years 1 through 8. Over time, that adds up to a total of $20,000!  You can then deduct the remaining $1,000 of your payment in Year 9"
https://maryland529.com/

1 Replies
New Member
Jun 4, 2019 8:05:01 PM

If you are the account holder or a contributor, you may deduct up to $2,500 of payments each year from your Maryland State income per beneficiary account. Payments in excess of $2,500 per account can be deducted in future years until the full amount of payments has been deducted. Since you are married you are allowed to deduct up to $5,000 per account, so the possibility does exist for a $10,000.00 deduction on your Maryland Income Taxes if you contributed $10,000 into their accounts.

"For example: If you purchase a 2-year University Plan for your child for a lump sum of $21,000, you can deduct $2,500 per tax year for each of Years 1 through 8. Over time, that adds up to a total of $20,000!  You can then deduct the remaining $1,000 of your payment in Year 9"
https://maryland529.com/