I have two 529 accounts, each with 2020 contributions exceeding $4000 (plus some carryover from 2019).
I would expect my total deduction to be $8000.
However, TurboTax is only showing $4000 as the total once I've entered all of the information.
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Be sure that you have entered each one as a separate account. Otherwise, the $4000 contribution limit per account may not be applied correctly.
For your reference, here is more information about the Virginia 529 deduction:
About Your Virginia529 Contributions
Which Plans Qualify for the Deduction?
Virginia offers 529 Plans:
- Virginia Education Savings Trust (Invest529)
- Virginia Prepaid Education Program (Prepaid529)
- CollegeWealth (only through certain banks)
- CollegeAmerica (only through financial advisers)
Who Gets the Deduction?
The owner of the account on record with the "Board" on 12/31 gets the deduction. An account can be owned by one or several people.
Is the Deduction Per Account or Per Person?
The deduction is based on the number of accounts you own. For example, if you have one savings account that provides for six children and a prepaid tuition account for another child the maximum you can deduct is based on ownership of two accounts, not the seven children who will receive benefits.
How Much Can I Deduct This Year?
That depends on your age, how much you paid toward a prepaid tuition contract or contributed to a savings account this year and if your payments to these accounts in a prior year were more than the maximum deduction allowed.
Let's start with your age. If the owner of the account is at least 70 years old this year, every dollar paid in a prior year that wasn't deductible in that year because of a maximum limit and every dollar paid this year is deductible. There is no limit.
If you're under 70 years old this year you can deduct up to $4,000 for each account you own. This dollar limit applies to current year payments and prior year payments available for a deduction this year.
Thank you for the response. Accounts have been entered as separate accounts, each with their own account number and contribution amount. I’ve entered to confirm and the result is still not as expected. I expect $8000 to be deductible and it only says $4000. This did work with last year’s edition.
To clarify my previous reply. Even after confirming that both accounts were entered as separate accounts, I am still seeing an incorrect calculation. I expect $8000 total deductions as there are two accounts with >$4000 contributions each. But TurboTax is still showing only $4000.
This has worked properly in years past. @AnnetteB6
There may be an issue with TurboTax Online. This works correctly in TurboTax Desktop\CD.
You can download your TurboTax Online to TurboTax Desktop\CD and finish if you are in a hurry.
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