Why isn't TurboTax giving me the total deduction from income to contributions to 529 plans in PA?

[tcanfieldturbo1]

Contributions are are fully deductible from PA income, but Turbotax shows less than half are deductible from income.

[AnnetteB6]

A quick test for your situation suggested that TurboTax is correctly deducting PA 529 contributions from PA income.  

However, it may be helpful to take a closer look to see what is happening with your tax return.  You can provide us with a diagnostic copy of your tax file to make that possible.  The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

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• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

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• Click OK.
• Post the token number here.

[tcanfieldturbo1]

Hi Annette ==

Thank you for your response!!! I'm impressed someone got back to me so quickly.

I figured this out with Francisco's help. The choice of who is making the gift ("contributor") to the 529 matters. We get the full deduction from tax taxable income on our joint return if I list me as making the gifts (I show that I am the contributor), but we don't if my wife makes the gifts (If I show that she is the contributor).

I now read the description of the PA 529 that states PA allows deduction from income according to individual – Taxpayer or Spouse – level of PA income. For our 2022 return, most of our PA income is mine, and only the joint income of interest and dividends is hers (half). Her calculated income was the limit when I had her as contributor.

I have the detail of past tax returns from my tax preparer. We've made gifts to 529s in prior years. In most years, the return shows I'm the contributor.

[AnnetteB6]

I'm glad your situation was resolved.  Thank you for letting me know.

@tcanfieldturbo1

[tcanfieldturbo1]

Annette === My suggestion is that TurboTax add the words on the screen where one enters the information and choice of who is the contributor. "Your deduction from PA income can be no more than the income of the person who is the contributor." and perhaps, "If you are a married, joint filer, you have previously indicated if you, your spouse, or jointly earned each item of PA income."