Contributions to a qualified college savings plan are not deductible on your federal return, but may be deductible on your state return. If your state allows a deduction, you will see the entry point as you work through the state return.
You can find more details here Information on 529 Plans
- Log into your return and click orange Take me to my return button
- Click on State Taxes and then Your State Returns right below that
- If you have already entered your state, click Edit next to it
- On the next page click Edit next to the Income section
- Scroll down to Education section and click Start/Revisit next to College Savings Plan Contributions
- You should be able to enter amount contributed on the next page
NOTE: If you file a South Carolina tax return, either as a resident or non-resident, you may be eligible for additional tax advantages2
- Future Scholar account contributions may be tax-deductible, up to the maximum account balance limit of $400,000 per beneficiary (or any lower limit under applicable law)
- When you withdraw money to pay for qualified higher education expenses, you pay no South Carolina state income tax on your withdrawals
- You can deduct 100% of your contributions that you made to the South Carolina Tuition Prepayment Program in 2016.
- You can deduct 100% of your contributions that you made to the South Carolina College Investment Program in 2016 and through April 15, 2017.
If 529 is not deductible for Federal tax forms way is in included on the deductions sections. You are wasting the self prepared tax preparators time investigating. Please don't ad thing to the forms that are not applicable.
Although contributions are not deductible, earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for college.
The 1099-Q for the 529 plan deductions is entered in Deductions and Credits.
Here are thedirections for 1099-Q