donations to a grandchild's 529 college fund-are they deductible

[AnnetteB6]

Often contributions to 529 plans are deductible on your state tax return. 

If you would like to add which state you are filing, we can look it up to be certain.

[TheOldDuffer]

Add to their college funds annually on their birthdays - are these donations deductable?

[TheOldDuffer]

They live in Illinois, we live in Kansas.

[ToddL99]

Yes, donations to your grandchildren's IL 529 plans are deductible on your KS state tax returns.

From KS Secretary of State - 529 Education Savings: Kansas taxpayers may take an annual deduction of up to $3,000 ($6,000 for married, filing jointly) from Kansas adjusted gross income for contributions into each beneficiary's account.

From Kansas 2020 Individual Income Tax Instructions (page 18):  Enter contributions deposited in the Learning Quest Education Savings Program (LQESP) or qualified 529 tuition programs (as defined under IRC Section 529) established by another state, up to $3,000 per student (beneficiary); or $6,000 per student (beneficiary) if your filing status is married filing joint. You may have your direct deposit refund sent directly to your LQESP account. Visit learningquest.com for details about saving money for higher education.

@TheOldDuffer

[jernpat]

Are contributions to the Virginia 529 funds deductible?

[AmyC]

Yes, if you are the owner of record.  Deductions | VA tax states: If you are under age 70 on or before Dec. 31 of the taxable year, enter the lesser of $4,000 or the amount contributed during the taxable year to each Virginia529 account (Virginia 529 prePAID, Virginia 529 inVEST, College America, CollegeWealth). If you contributed more than $4,000 per account during the taxable year, you may carry forward any undeducted amounts until the contribution has been fully deducted.

However, if you are age 70 or older on or before Dec. 31 of the taxable year, you may deduct the entire amount contributed during the taxable year. Only the owner of record for an account may claim a deduction for contributions made.

@jernpat

[Lindarandall5045]

I am in Alabama donating for 3 grandchildren   Where do I list in Turbo Tax

[MayaD]

The full amount contributed into the 529 Plan can be deducted up to $5,000 per taxpayer. If you file Married filing Joint on your tax return, the maximum amount of $10,000 can be deducted. Alabama 529 Savings Plan FAQ

In TurboTax:

1. Open your state return 
2. Continue until you get to the screen Did You Contribute to an Alabama 529 College Savings Plan?
3. Enter your contribution

[vc13]

Can I deduct Virginia 529 plan contributions if I live in Illinois?

[Vanessa A]

No, you cannot deduct contributions to a VA 529 plan if you live in IL.

"You are allowed to subtract up to $10,000 in contributions if you are single and $20,000 if you are married filing a joint return for contributions you made to the “Bright Start” program, the "College Illinois" Illinois Prepaid Tuition Trust Fund, or the "Bright Directions" program during the tax year. The total subtraction for contributions made to both college savings plans may not exceed $10,000 for single filers and $20,000 for joint filers, even if you contributed more. Contributions to any other IRC Section 529 programs may not be deducted." https://www2.illinois.gov/rev/questionsandanswers/pages/206.aspx

[JDalby5]

How are contributions to a grandchild's 529 Plan handled for tax purposes in Illinois?

[LenaH]

You are allowed to subtract up to $10,000 in contributions if you are single and $20,000 if you are married filing a joint return for contributions you made to the “Bright Start” program, the "College Illinois" Illinois Prepaid Tuition Trust Fund, or the "Bright Directions" program during the tax year. The total subtraction for contributions made to both college savings plans may not exceed $10,000 for single filers and $20,000 for joint filers, even if you contributed more. Contributions to any other IRC Section 529 programs may not be deducted.

To input, go through your Illinois return until you get to the screen Here's the income that Illinois handles differently. Under Education, click Start next to College savings and prepaid tuition plan contributions and follow the on-screen instructions. 

@JDalby5

[Rbroch1]

Is donation to a grandchild's 529 college fund deductible in Illinois?

[Rbroch1]

state of illinois?