- Log into your return and click orange Take me to my return button
- Click on State Taxes and then Your State Returns right below that
- If you have already entered your state, click Edit next to it and Continue
- Then click Edit/Start next to Credits and Taxes
- On the next page, click Start/Revisit next to Indiana CollegeChoice 529 plan and answer Yes to Do you have a CollegeChoice 529 Plan? and Yes if you had any contributions.
- You should then see CollegeChoice 529 Contributions page to enter your account number, check box there if you are not the account owner, and put in the contribution amount. If you need to add more than one account, click Add Another Account on the next page.
NOTE: Contributions to a qualified college savings plan are not deductible on your federal return, but may be deductible on your state return. If your state allows a deduction, you will see the entry point as you work through the state return.
You can find more details here Information on 529 Plans
1) If you made a contribution to your account in 2016, we can help you get an Indiana credit of up to $1,000
2) If you took a credit for a contribution in a previous tax year and made a nonqualified withdrawal in 2016, you'll have to repay part or all of the credit amount (this is called a recapture).
A nonqualified withdrawal is any withdrawal that's not used for qualified higher education expenses (withdrawing money to buy a car, for example). However, a withdrawal because of the death or disability of the person benefiting from the education is not considered a nonqualified withdrawal.
Taxpayers in Indiana who contribute to the state's CollegeChoice 529 Savings Plans can get a tax credit of 20% back on their contribution, up to a threshold of $1,000.
The maximum credit is $200 ($1000 x 20% = $200. For an $800 contribution, the credit would be $160, at most. It is a non refundable credit. So, if your tax liability was only $24, then your credit would only be $24.
Still have questions?Make a post