Why did Turbotas reduce our Virginia 529 deduction?

[smlmom]

In Virginia, my husband contributed $4000 to each of our 4 grandchildren's 529 fund for a total of $16000. Turbo tax is only letting us take a $12000 deduction in Virginia taxes. Why?

[MaryK4]

Please go back to the Virginia state section and make sure you have four different ACCOUNT NUMBERS entered to get the correct credit- if this does not work, post again.

[smlmom]

Virginia 529 followup.  There are 4 different account numbers and plenty of AGI to apply the $16000 deduction to but Turbotax still caps our deduction at $12000. 

[JotikaT2]

Let's try something else.  

Go into your state interview section for Virginia.

Under the page titled Here's the income that Virginia handles differently, scroll down to Education and select Virginia 529 or ABLEnow Distribution or Refund.  Select Start/revisit here.

1. Select  Yes on the next page where it asks if you have had a 529 plan
2. On the next page, check the box next to I made a payment or contribution in 2019.
3. You should have your four accounts entered in the following page.  Be sure to review the input on each account number. Confirm each entry shows the $4,000 for each contribution you made.
4. The next page will show the total contribution you are allowed to take.  It should look similar to the following.  

If you are still showing $12,000 after reviewing the steps above, please comment so we can try to narrow down there the issue is.

[smlmom]

After reviewing all our entries, there is no change.  Turbotax still shows our VA 529 contribution at $16000  but our deduction at $12000.  Any other ideas?

[JotikaT2]

It would be helpful to have a TurboTax ".tax2019" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

Then select Tools below Tax Tools. 

A window will pop up which says Tools Center.  On this screen, select Share my file with Agent. 

You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 

Reply to this thread with your Token number.  

This will allow us to open a copy of your return without seeing any personal information. 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[smlmom]

After triple checking all my entries and Turbo tax still only letting us take $12000 of the $16000 Virginia 529 deduction I decided to erase all 529 related entries, close turbotax, reopen turbotax and then reenter all 529 information.  It worked and gave me my full deduction so I am quitting while I am ahead.  I still think turbotax has a bug, but I am not spending any more time on it.

[smlmom]

None of tips worked.  In frustration, I deleted any entries in my return related to the VA 529, saved my turbotax file, closed turbotax, then reopened turbotax.  I then reentered everything and somehow the $16000 deduction showed up.  Hooray.  I think you have a bug in the Virginia 529 calculations but I am not going to spend any more time on the problem.  Thanks for responding anyway.