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

[Rbroch1]

for state of illinois

[MichaelG81]

It depends, if you are enrolled in a Illinois state approved 529 program. Also, if you receive a form for your contributions or are they going to the person who owns the 529? Contributions in Illinois are deductible for single taxpayers and more for married couples. Grandparents may deduct at the state level for Illinois, if basic rules are met for contributions. $10,000 for Single Illinois Taxpayers and $20,000 for Married Joint Filers is the maximum deductible amount in Illinois. 

@Rbroch1 

[jeanladd]

Illinois. are deductions made by the grandparent to the parents account for the grandchild deductible by the parent?

[SharonD007]

If you are asking if a parent can deduct a contribution made to a 529 Plan that a grandparent made, then the answer is No. Contributions to a 529 Plan are not deductible on your federal tax return but may be deductible at the state level. The grandparent may be able to deduct contributions made to the Bright Start Program, the College Illinois - Illinois Prepaid Tuition Trust Fund, or the Bright Directions program during the tax year. Please review the IL Department of Revenue FAQs Do contributions to IRC Section 529 college savings and tuition programs qualify as a deduction?

[JohnKC83]

I'm not sure about other states, but my wife and I have been using Learning Quest and been very happy with their support and noting with our taxes is pretty easy as well. Best of luck!

[Hal_Al]

There is no federal deduction for making a contribution to a 529 plan. Some states allow a deduction on the state return. If your state is one, it will come up in the state interview; usually in the "Here's how (your state) handles income differently" section.

For a state list of eligible plans, see: https://www.savingforcollege.com/529-plan-details

http://www.savingforcollege.com/compare_529_plans/index.php?page=compare_plan_questions&plan_questio...