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Level 3
posted Mar 18, 2023 7:08:43 AM

Virginia 529, What counts as a unique account for figuring the deduction?

I have two kids.  I am the owner of all Virginia529 accounts.  These are Invest529.

 

There are three distinct accounts per kid - one for bonds, one for stocks, one for international stocks.  Each account has its own account number.  Virginia529 reports on each account separately.

 

That's a total of six separate accounts.  Can I deduct $4,000 of income for each account?

 

That's a huge potential deduction.  And it seems to be a unintended consequence of the the way Virginia529 reports and tracks the income.  Rather than having a single brokerage-type account per child with multiple holdings, they organize each type of holding into its own account.  It's to my benefit, but is that really what's allowed?

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1 Best answer
Expert Alumni
Mar 18, 2023 7:45:09 AM

Based on the information found on the Virginia529 website, you are allowed to deduct up to $4000 per account per year.  The amount not deducted in a current year may also be carried forward to future tax years.  So, your understanding does appear to be correct.

 

To learn more, see the following website:  Virginia529 FAQ

2 Replies
Expert Alumni
Mar 18, 2023 7:45:09 AM

Based on the information found on the Virginia529 website, you are allowed to deduct up to $4000 per account per year.  The amount not deducted in a current year may also be carried forward to future tax years.  So, your understanding does appear to be correct.

 

To learn more, see the following website:  Virginia529 FAQ

Level 3
Mar 23, 2023 4:24:43 PM

That’s what I went with, thanks!