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To add, edit, or delete NY State College Savings (Section 529) Plan contributions, please review the following instructions:
To add, edit, or delete NY State College Savings (Section 529) Plan contributions, please review the following instructions:
What's the amount I can enter in Turbotax for the 529 College Savings Contribution entry? I think the deduction is capped at $5,000. But I actually contributed $7,000 and Turbotax doesn't cap my deduction in the calculation. I am able to enter the actual contribution $7,000, my New York tax calculated by Turbotax is lower than if I enter the max allowed deductible amount $5,000.
Turbotax also asked for Total New York 529 Contributions (from 1998 through 2018) made to New York 529 College Savings Program accounts. Should I enter the actual amount contributed which exceeded $5,000 per year, or should I cap my entry of the contribution at max deductible $5,000?
It'll be helpful if Turbotax applies the cap in the program. It's unclear which amount to enter in the case where the actual 529 contribution exceeds the max deductible amount.
Did anyone have any feedback on this last question? First of all the program doesn't seem to cap the contribution (so you have to cap yourself at 10k or it will give you too much of a deduction), at least the 2018 version. Second, its unclear whether they want you to give all contributions <= 10k for each year from 1998 on, or the full amount. It seems to want the capped amount for each year, but the question about total contributions seems to want the uncapped number.
I agree! TurboTax is exposing users to an error on their state tax returns! In my case, in calendar year 2021, my wife and I contributed a total of $21,100 to the two New York state 529 plans we have for our two children. While TurboTax says "but not more than $10,000 for this year" in parentheses, the software allows you to enter much more than the $10,000 limit (for husband and wife -- married filing jointly).
When I entered just the $10,000 (cap), my NY state tax refund computed to $3,335. But when I entered $21,100, my NY state tax refund jumped to $4,037!
TurboTax should fix this and add some validation to avoid letting users exceed their caps ($5,000 or $10,000).
Curious to hear what an expert has to say about this.
Thank you!
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