Trying to get the Indiana 529 credit. turbotax states "status is married filing separately, not eligible for this credit." Indiana DOR disagrees. A bug in turbotax?

[JohnW15]

It looks like TurboTax programming correctly reflects the current law.

According to the instructions for Schedule IN-529: Indiana’s College Choice 529 Education Savings Plan Credit, "This credit … is available to an individual filing a single return or to a married couple filing a joint return."

The document is only available in pdf, so I can't post a direct link here, but you can access it from 2018 INDIVIDUAL INCOME TAX FORMS; open the "IN-529" link to find the form and its instructions.

[slowrider5]

I encountered the same issue.  Wife and I file MFS due to her income-based repayment on student loans.  It was nice to double-dip on the 529 credit because the 529 credit was per taxpayer.  Now, when they changed the law in 2018 to allow 529 to be used for K-12 they also eliminated the credit entirely for people who file MFS.

Here is a bulletin from the Indiana DoR.

https://www.in.gov/dor/reference/files/ib98.pdf

[JohnW15]

Thank you for that comment, Slowrider!

[tdeal1867]

Bummer!   It would be nice to know IND rationale for excluding MFS filers from receiving this credit.  If it was a concern with 'double dipping' on the credit (married filing separately could claim 2x?) I would think they (INDIANA) could limit to only one credit due per related contribution.