MOST/ 529 contributions

[LN10]

Can we take a deduction for our 2020 contribution to our grandson's MOST -529 account setup by his parents?  We live in the same state as our grandson -Missouri.

[AmyC]

Yes, IF you meet the requirement on page 15 of the MO 1040 instructions which state:

LINE 11 - EXEMPT CONTRIBUTIONS MADE TO A QUALIFIED 529 PLAN The state of Missouri allows a subtraction from federal adjusted gross income for the amount of annual contributions made to the Missouri Savings for Tuition Program (MOST), or any other qualified 529 plan. The maximum annual exempt contribution is $8,000 for single individuals or $16,000 for married couples filing a combined return.

If you contributed to MOST, or any other qualified 529 plan and are claiming the subtraction on your Missouri income tax return, please attach one of the following with your return:

• Statement from program manager showing contribution in the name of the individual claiming the subtraction,

• Bank statements reporting/verifying the contribution date and contribution amount,

• Copies of canceled checks,

• Other supporting documentation verifying the name of the individual who contributed to the MOST 529 account, contribution dates, and contribution amounts.

The documentation verifying contributions must be in the name of the individual claiming the subtraction.

[scmintz]

For the last two years, I entered the 529 contributions in the appropriate interview question. However, there is no amount shown on Line 49 and no subtraction shown. When I tried to create an amended return, TurboTax would not create one. What am I missing?

[DoninGA]

---

@scmintz wrote:

For the last two years, I entered the 529 contributions in the appropriate interview question. However, there is no amount shown on Line 49 and no subtraction shown. When I tried to create an amended return, TurboTax would not create one. What am I missing?

---

See this TurboTax support FAQ for amending a tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

Using the TurboTax online editions for an amended return -

To access your prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/

Start the 2022 online tax return by entering some personal information then click on Tax Home on the left side of the screen.

On the Tax Home webpage -

Scroll down to the section Your tax returns & documents.  Click on the Year and Click on Amend (change) return

Using the TurboTax desktop editions for an amended return -

Start the TurboTax program for the tax year you need to amend

Continue the tax return that needs to be amended

Click on Federal Taxes

Click on Other Tax Situations 

Under Other Tax Forms

On Amend a return, click on the start or update button

[scmintz]

The issue is not how to start/file an amended return. It is that the 529 contributions are not shown on line 48 of 2020 MO-1040.  The contributions were correctly entered during the Desktop interview process are not reflected in the MO-1040.

The same issue occurs on Line 49 of the 2021 MO-1040 form.

So my question is how should the MO tax credit be shown on the MO-1040. If it is not correctly shown, then I will need to file amended MO-1040s for 2020 and 2021.

[AmyC]

First, the tax credit is shown on the MO 1040, page 2, line 4 carried from the MO-A. This reduces your MO adjusted gross income on line 5.

Please check your MO-A. Your contributions should show on the lines below.

• MO-A- Individual Income Tax Adjustments 2022 - see line 12
• MO-A- Individual Income Tax Adjustments 2021 - see line 12
• MO-A- Individual Income Tax Adjustments 2020 - see line 11

Let's begin with page 15 of the 2020 MO 1040 instructions regarding the MO-A, which state:

LINE 11 - EXEMPT CONTRIBUTIONS MADE TO A QUALIFIED 529 PLAN The state of Missouri allows a subtraction from federal adjusted gross income for the amount of annual contributions made to the Missouri Savings for Tuition Program (MOST), or any other qualified 529 plan. The maximum annual exempt contribution is $8,000 for single individuals or $16,000 for married couples filing a combined return.

If you contributed to MOST, or any other qualified 529 plan and are claiming the subtraction on your Missouri income tax return, please attach one of the following with your return:

• Statement from program manager showing contribution in the name of the individual claiming the subtraction,

• Bank statements reporting/verifying the contribution date and contribution amount,

• Copies of canceled checks,

• Other supporting documentation verifying the name of the individual who contributed to the MOST 529 account, contribution dates, and contribution amounts.

The documentation verifying contributions must be in the name of the individual claiming the subtraction.

Second, since you are using the desktop version, you can go into the FORMS mode and input the data directly, if needed. Then you can mail the proof with the amended form. Be sure to mail with tracking since it is confidential information.

Third, as for line 48 2020 or line 492021 being blank, that line is to direct your refund into a 529 account. You have to decide how much of your refund, if any, you want deposited and must file form 5632. If you want your refund to be deposited into the 529 account, fill out line 48 or with the desired amount and form 5632.

5632 -2022 MOST - Missouri's 529 College Savings Plan Direct Deposit Form - Individual Income Tax

5632- 2021 MOST - Missouri's 529 Education Savings Plan Direct Deposit Form - Individual Income Tax

5632- 2020 MOST - Missouri's 529 Education Savings Plan Direct Deposit Form - Individual Income Tax

This year, 2022, it is line 51. MO-1040 

@scmintz