We contributed $5,000 our Indiana 529 Account. When filing our taxes it only credits us 12% or $592. why are we not being credited the full 20% or $1,000?

[SweetieJean]

The taxpayer is entitled to a credit against the state adjusted gross income tax liability for a taxable year. The credit cannot be used to offset any county tax liability.

The amount of the credit is the lesser of the following:

(1) 20% of the amount of all contributions the taxpayer makes to an account(s) of the Indiana CollegeChoice 529 Education Savings Plan during the taxable year; or 

(2) amount of the taxpayer’s adjusted gross income tax liability for the taxable year reduced by the amount of credits allowed; or

(3) $1,000. 

Most likely you are being impacted by (2).

http://www.in.gov/dor/files/ib98.pdf