Enter your Colorado 529 deduction on the screen “Here's the income that Colorado handles differently” in the Colorado section of TurboTax.
Then select 529 CollegeInvest Program Contributions.
To qualify for this Colorado subtraction, the plan must be administered by CollegeInvest. Your contribution must be included in your federal taxable income.
Here are some plans that qualify:
- Direct Portfolio College Savings Plan
- Scholars Choice College Savings Program
- Stable Value Plus College Savings Plan
- Smart Choice College Savings Plan
Contact CollegeInvest at www.collegeinvest.org or call 1-800-448-2424 for information on the plans that they offer.
What exactly does "Your contribution must be included in your federal taxable income." mean?? I'm retired and contributing to a 529 for my grandson.
Contributions to a 529 plan are not deductible and do not have to be reported on federal income tax returns. This IRS website states:
You can't deduct either payments or contributions to a Qualified Tuition Program (QTP).
Investment earnings in the account are not reportable until the year they are withdrawn. Distributions will be reported on IRS form 1099-Q.
Some states may allow you to deduct all or part of your 529 plan contributions.
Where are you seeing "Your contribution must be included in your federal taxable income."? Please clarify.
The statement is made on the screen where you enter your Colorado 529 plan contributions.
The Colorado state tax return starts with the Federal taxable income, then additions and subtractions are made to determine the Colorado taxable income. The statement is trying to say that you must have some amount of Federal taxable income in order to deduct your contribution to the Colorado 529 plan. The deduction for the contribution cannot be greater than your Federal taxable income or the contribution would not be 'included in your Federal taxable income'.
How do we report on federal tax return? It did not ask anything about 529 college investment contribution on federal tax return? would you show in which line do we put on federal income? turbo needs to work on it,
my federal tax return is accepted and state is rejected and its asking Name of the COLLEGEINVEST account number must be provided. where do i put the ACCOUNT NUMBER????????
This is not a federal deduction, only a state deduction. You will need to go through your State section again to where it asks about your contribution. You don't say what state you are in so I can't give you specific guidance.
Here's how you can fix a reject:
Sign in to your account and select the Fix my return button. Follow any “fix it” instructions to update the information causing the rejection.
Note: Not all rejections will have explicit guides to fix the information. You’ll need to navigate to the program area to address the cause of the rejection.
I ran into the same issue today. The best place to enter Colorado 529 contributions is in the "Income" portion of the "State Returns" section, under "Education", It took me a while to find it, I hope this saves someone else some time.