Hi there,
My wife and I are married filing jointly. We live in NC so we file in NC as residents. My employer is in PA so every year I file PA state return as a non-resident. Recently we started looking at college saving for our kids. In PA, taxpayers can deduct contributions to the 529 plan from their Pennsylvania taxable income up to $15,000 per beneficiary, per year. My question is: does that apply to non-resident?
Another related question, if it does, how can I claim the tax credit/deduction in my PA state return using TurboTax?
No.
The deduction allowed on the Pennsylvania tax return (PA-40) is for a PA529 Plan only, and in order to open a PA529, one needs to be a resident.
The instructions for the PA-40 are not very clear in stating the type of plan or taxpayer that may claim the credit, but research on the PA-529 makes it clearer that the credit is for the state administered plans exclusively.
(There is specific reference to a PA259 on PA Schedule O page 10-
"REMINDER: Include the amount of any IRC Section 529 contribution reported and made from the immediately preceding tax year’s PA-40 Schedule P, Refund Donations to Pennsylvania 529 College Savings Program Accounts.")
North Carolina, for tax year 2021, does not offer any state credit for 529 Plan contributions.
No.
The deduction allowed on the Pennsylvania tax return (PA-40) is for a PA529 Plan only, and in order to open a PA529, one needs to be a resident.
The instructions for the PA-40 are not very clear in stating the type of plan or taxpayer that may claim the credit, but research on the PA-529 makes it clearer that the credit is for the state administered plans exclusively.
(There is specific reference to a PA259 on PA Schedule O page 10-
"REMINDER: Include the amount of any IRC Section 529 contribution reported and made from the immediately preceding tax year’s PA-40 Schedule P, Refund Donations to Pennsylvania 529 College Savings Program Accounts.")
North Carolina, for tax year 2021, does not offer any state credit for 529 Plan contributions.