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15162: 1040 - 529 Plan Deductions


State Returns Generally

What is a 529 plan, and where can I enter that in Drake Tax?

A 529 plan is a program operated by a state or educational institution with tax advantages, as well as other incentives for the taxpayer. The purpose of these programs is to allow the taxpayer to begin saving for college, or other post-secondary training for a designated beneficiary, such as a child or grandchild.

As of 2018, the federal rule will extend to include up to $10,000 in annual expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Some states may not extend their 529 rules to include this change.

529 contributions made during a year are not deductible on the federal return, however, most states allow for a deduction up to a certain limit set by the State DOR. In most cases, contributions over the state deduction limit may be carried forward for deduction in future year’s tax returns until used (limits may apply).

For more information, see the IRS 529 Q&A.

Note: The states of  Alaska, California, Delaware, Florida, Hawaii, Kentucky, Maine, Nevada, New Hampshire, New Jersey, North Carolina, South Dakota, Texas, Tennessee, Washington, and Wyoming do not allow a deduction for a 529 plan contribution.

States allowing 529 deduction:

State Plan Name     Maximum Deduction  Data Entry Helpful Links
Alabama

Alabama 529

$5,000 Single/MFS, $10,000 MFJ

Resident: AL General Tab > Screen 2 >  Part 2 > Line 8


Nonresident: AL General Tab > Screen 4 > Part 2 > Line 5

AL 529 FAQ

Arkansas

AR 529 Gift Plan

$5,000 Single/MFS, $10,000 MFJ 

AR General Tab > Screen ADJ > Line 2

AR Treasury

Arizona

AZ 529 

$2,000 Single/MFS, $4,000 MFJ

AZ General Tab > Screen 2 > Line

34(Res)/41(PY) in Drake 19 and forward and Drake17 and prior
35 (Res)/42 (PY) Drake 18 only

AZ DOR 

Colorado

Tuition Program

No Limit 

CO General Tab > Screen 2 > Line 6

CO FYI Income 44 

Connecticut

C.H.E.T. 

$5,000 Single/MFS, $10,000 MFJ

CT General Tab > Screen 2 > Line 48(RES)/50(NRPY) 

C.H.E.T Info

About C.H.E.T.

Washington DC

DC College Savings Plan

$4,000 Single/MFS, $8,000 MFJ

DC General Tab > Screen I > Calculation B > Line 6

DC College Savings Plan

Georgia

GA Higher Education Plan

$4,000 Single/MFS, $8,000 MFJ

GA General Tab > Screen 3 > Line 9 

GA 529 College Savings

Path2College 529 Info

Iowa

College Savings Iowa, Iowa 529

Tax Year 18: $3319 per Taxpayer (Primary and/or Spouse) for each beneficiary (student) account.

Tax Year 19: $3,387 per Taxpayer (Primary and/or Spouse) for each beneficiary (student) account.

Tax Year 20: $3,439 per Taxpayer (Primary and/or Spouse) for each beneficiary (student) account.

Tax Year 21: $3,474 per Taxpayer (Primary and/or Spouse) for each beneficiary (student) account.

IA General Tab > Screen LN24 > Line G

College Savings Iowa

 

Idaho

IDeal - 529 College Savings Plan

$6,000 Single/MFS, $12,000 MFJ

ID General Tab > Screen 5 > Line 14 (Res)/9 (NR)

IDeal - 529 College Savings Plan

Illinois

Bright Start, Bright Direction, College Illinois

$10,000 Single/MFS, $20,000 MFJ  

IL General Tab > Screens BRIG (Bright Start), BDIR (Bright Direction), or COIL (College Illinois) as applicable.

In prior years, screen M2 > Line 13a, 13b, 13c as applicable. 

Illinois College Savings

Indiana

College Choice 529 Direct Savings Plan 

This credit is limited to the lower 20% of contributions, or $1,000 on the tax liability of the taxpayer ($500 if filing MFS).  

IN Credits Tab > Screen CC40 >  Enter the College Code, Date of Contribution, and Amount Given for each contribution.

College Choice 529 Investment Plan

Indiana Education Savings Authority

Kansas

Learning Quest, Learning Quest Advisor, Schawb 529 Plan 

$3,000 Single/MFS, $6,000 MFJ 

Drake 16 and prior:
Contributions:
KS General Tab > Screen A > Line A21

Withdrawals: KS General Tab > Screen A > Line A13 

Drake 17 and forward:
Contributions:
KS General Tab > Screen A > Line A13

Withdrawals: KS General Tab > Screen A > Line A5

Kansas Postsecondary Education Savings Program



Louisiana

START Saving Program 

$2,400 Single/MFS, $4,800 MFJ 

LA General Tab > EH Screen > Code 09E

START Saving Program 


Saving Program FAQ  

Massachusetts

U.FUND 

$1,000 Single/MFS, $2,000 MFJ 

MA General Tab > XY Screen > Line 18

MA DOT

UFUND Plan

Maryland

Maryland Prepaid College Trust, Maryland College Investment Plan

$2500 Per Account Per Year. Excess payments can be rolled over into the next year until they are used.

MD General Tab > SUB Screen > Line XA, XB, and XC depending on the account type. 

MD 529

Advantages & Benefits 

Michigan

MiABLE

$5,000 Single/MFS, $10,000 MFJ 

MI General Tab > Screen 2 > Line 17

Michigan 529 Advisor Plan 

MiABLE

Minnesota

Minnesota 529 

$1,500 Single/MFS, $3,000 MFJ

MN Other Tab > Screen 529 > enter Trustee, Account Number, and Amount

Tax and Credit Deduction

Saving for College - 529 Plans

Missouri

MOST 

$8,000 Single/MFS, $16,000 MFJ

MO General Tab > Screen A > Line 11 

About MOST

529 Plan FAQ

Mississippi

MACS, MPACT 

$10,000 Single/MFS, $20,000 MFJ

MS General Tab > Screen DED > Line 55/56 or 56/57 depending on the account type. 

MPACT FAQ

MACS FAQ

Montana

Montana 529 

$3,000 Single/MFS, $6,000 MFJ 

MT General Tab > Screen SCH2 > Line 17 (line 20 in Drake17 and prior)

Montana 529 FAQ

North Dakota

College SAVE

$5,000 Single/MFS, $10,000 MFJ 

ND General Tab > Screen ND1 > Line 12 (Line 14 in Drake18 and prior)

Bank of ND

College SAVE Tax Benefits

Nebraska

NEST 529

$5,000 Single/MFS, $10,000 MFJ

**This deduction only applies to contributions from parents who are the account owner/s, or contributions made by the beneficiary.

NE Income Tab > Screen SCH1 > Line 16 or 17 (line 17 or 20 in Drake17 and prior) depending on the account type.

NEST 529 Tax Benefits 

New Mexico

New Mexico 529 

You can deduction the entirety of your contributions from your New Mexico income. 

NM General Tab > Screen ADJ > Line 14

NM Tax Benefits for College Savings

New York

New York 529 

$5,000 Single/MFS, $10,000 MFJ 

NY General Tab > Screen 6 > Line 10

Beginning in Drake 17 you can also have an amount from your refund directly deposited into this 529 account by going to the Federal DD Screen > Selecting the link at the bottom of the page that states NY College 529 Plans > Entering all applicable details.

NY College 529 Program

NY Saves

Ohio

Ohio College Advantage 529 Savings Plan

Contributions, including rollover contributions, to an Ohio 529 plan are deductible up to $4,000 per beneficiary (regardless of filing status). There is also an unlimited carryforward of excess contributions. 

OH General Tab > Screen 529 >  Enter details as applicable.

You can also have an amount from your refund directly deposited into this 529 account by going to the Federal DD Screen > Selecting the Link at the bottom of the page that states Ohio College 529 Plans > Entering all applicable details.

Ohio Virtual Tax Academy

Ohio Saving for College 529 Plan

Oklahoma

OCSP - Oklahoma 529 College Savings Plan 

$10,000 Single/MFS, $20,000 MFJ 

OK General Tab > Screen 4 > Line 4 

OK 529 Plan FAQ

Oregon

Oregon ABLE Savings Plan

Oregon offers a $150 tax credit for single filers, and a $300 tax credit for joint filers. Contribution amounts needed to get the maximum credit depends on the AGI of the contributor. See the Oregon College Savings Plan FAQ for additional information.

OR General Tab > Screen SUB > Line 324 

Oregon College Savings Plan

Oregon College Savings Plan FAQ

Pennsylvania

PA 529 College Savings Program 

$15,000 Single/MFS, $30,000 MFJ 

PA General Tab > Screen O > Enter details of each contribution into PART I

PA 529 FAQ

Rhode Island

CollegeBound

$500 Single/MFS, $1,000 MFJ

RI General Tab > Screen M > Line 1g 

RI Office of the General Treasurer

RI CollegeBound Saver 

South Carolina

Future Scholar

Future Scholar account contributions may be tax-deductible, up to the maximum account balance limit of $520,000 per beneficiary (or any lower limit under applicable law).

SC General Tab > Screen 2 > Line k/38

Future Scholar

Future Scholar FAQ

Utah

my529

(Formerly Utah Educational Savings Plan - UESP)

A Utah individual taxpayer (or trust) who is a my529 account owner may claim a Utah state income tax credit up to certain limits on contributions to his or her account or accounts. The maximum credit and deduction are reviewed each year and may be changed.

A Utah taxpayer may not claim Utah state tax benefits for a contribution made to an account for which he or she is not the account owner. See My529 Tax Advantages for more information.

UT General Tab > Screen 2 > Line 54

My529

 

Virginia

Virginia 529 

Taxpayers may deduction up to $4,000 per account, per year, with unlimited carryforward of excess contributions.

VA General Tab > Screen CSPD > Enter the contributions made to each account as applicable.

VA529

VA529 FAQ

Vermont

VHEIP - Vermont Higher Education Investment Plan

A state income tax credit of 10% of the first $2,500 contributed to VHEIP per beneficiary per tax year is available to any Vermont taxpayer (or, in the case of a married couple filing jointly, 10% of the first $5,000 contributed per beneficiary) – a tax credit worth up to $250 per beneficiary ($500 per beneficiary for married couples filing jointly).

VT Credits Tab > Screen HEC > Enter amounts as applicable.

VT Higher Education Investment Plan

Benefits and Advantages 

Wisconsin

WI 529 College Savings Program

$3,380 per beneficiary, regardless of filing status. Contributions in excess of $3,380 may be carried-forward to be applied in subsequent tax years.

WI General Tab > Screen CS > Complete Part 1 Section A with all applicable details.

WI 529 College Savings Program

West Virginia

SMART529

Taxpayers can deduct up to 100% of contributions from their WV income, but only to the extent the payments have not been previously allowed as a deduction when arriving at your federal adjusted gross income. 

WV General Tab > Screen M > Line 37 (line 47 in Drake17 and prior) 

SMART529 General Information

SMART529 FAQ



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