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Shouldn't Iowa adjustments for 529 plans reduce my taxable income? I'm seeing it increase my taxable income!

When I put my contributions $$ to my Iowa 529 plans into the deductions section of the Iowa tax forms, I see my taxable income increase instead of decrease.
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1 Reply

Shouldn't Iowa adjustments for 529 plans reduce my taxable income? I'm seeing it increase my taxable income!

Others are having the same problem....The most likely problem.....The IA forms are NOT implemented yet.

The Main forms are not scheduled to be ready until 25 January (used to be 18 Jan...but they changed it), and a bunch of others, not until 8 FEB !!!

 

You can monitor it at the follwing website:

Intuit App

Until then you shouldn't even bother going thru the IA Q&A.

_________

I had the same problem with my NC tax returns one year.....I entered stuff before the final forms were issued in the software...and the $$ went into the prior year form lines....which were the wrong lines for the tax new year, resulting in refund/balance-due gibberish.

 

It should resolve itself either on Jan 25th/26th..or Feb 1/2, or Feb 8/9...depending on exactly which sub-forms the 529 donations end up on (should be IA Schedule 1...but I don't see it listed separately.)

 

Because of all the other forms not "expected" to be complete until 8 Feb...you might have a longer than normal wait, but that could depend on what else is in your IA tax file.

 

Just leave IA alone for a few weeks, then come back and go thru it again.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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