VA529 Contributions

[Suki3]

After pulling my hair out trying to find where in the "interview" I would get the opportunity to enter my VA529 deductions, I did the only thing I could do, which was to switch to forms (click on Forms icon in blue upper righthand corner), got to the VA section and select the Deductions Statement where you can see the editable spaces for entering your contributions and any carryover.  No other way as far as I can tell. Considering this issue was raised for at least the past two years in this forum, my question is WHY HASN'T TURBOTAX FIXED THIS? Several years ago, entering these figures was a breeze.  You are better off printing and filing State by mail and saving the $25 and your hair.

[AnnetteB6 · Accepted solution]

Look for the screen titled, 'Here's the income that Virginia handles differently' to get started.  

On that page, there will be a section for Education > Virginia College Savings Prepaid Tuition (Section 529) Plan.

See the screenshot below for a visual reference:

[Hal_Al]

 Some states allow a deduction on the state return. If your state is one, it will come up in the state interview; usually in the "Here's how (your state) handles income differently" section.

I have verified (desktop Deluxe) that the Virginia program has it in that place.  Enter at:

-Education

  -Virginia College Savings Prepaid Tuition (Section 529) Plan

On the next screen, answer Yes, we had one of these plans, then follow the interview. The wording is a little more "involved" than most other states. 

[Suki3]

Thank you!  This is in a different spot (I think) than in the past. I was not expecting this under income.  Also, for some reason the interview never walked me to that portion. 

[jaypops96]

When asked to enter the accounts and amounts, I'm having a problem.  I have two children, and each child has 3 different account numbers (since in the self-directed investment option for va529, each mutual fund investment has a different account number).  So this is leading to a falsely large allowable deduction for 2022.  I put in 16k this year (8k for each child), as well as an 8k unreported carryover from an earlier year.  Turbotax is telling me that i can deduct $15k this year, and $9k will be carried over to next year.  That seems impossible, since I believe the deduction limit is $4k per child, so my maximum deductino for 2022 should be $8k, right?  How can I do the bookkeeping properly for these 3 different account numbers per child?

[jaypops96]

The only thing I can think to do is to enter a truncated account number, one for each child, and then just combine all my account contributions for that child under that abbreviated account number.  That might fix the bookkeeping.  The downside is that the stated account number will not be complete, but not sure if that really matters.  If i ever get audited I can produce the account records.

[AnnetteB6]

The limit for deducting contributions to the VA529 plan is $4000 per year per account if you or your spouse are the account owner.  The limit is not per child.  

Take a look at the following website for further information:

Reporting Contributions on Your Tax Return

@jaypops96 

[Hal_Al]

I don't think you get to count each  self-directed investment option, within the single  VA 529 plan as a separate account for the purposes of the contribution deduction.  I would think the umbrella 529 account has an account number and that's the only one you enter. 

[jaypops96]

@Hal_Al regarding " I would think the umbrella 529 account has an account number and that's the only one you enter." -- that is precisely what I assumed.  But it does not appear to be the case on my accounts held through va529.  each mutual fund has a separate account number, and there is no overarching account number I can find anywhere.  

[Hal_Al]

You earlier said 

"The only thing I can think to do is to enter a truncated account number, one for each child, and then just combine all my account contributions for that child under that abbreviated account number. "

I think you should do something like that. I would use one of the real account numbers (the one used in previous years, if still valid) but enter all the contributions under that number.