TransWikia.com

529 college saving plan only affect state tax return but not federal tax return, correct?

Personal Finance & Money Asked on July 6, 2021

I just realized that the 529 plan contribution deadline is the end of the calendar year. So my first-time 529 plan contribution that happened a few days ago should not be counted in the year 2020 tax return. I need to amend my tax return. My understanding is that the 529 plan only related to the state tax return. Am I correct? I am in MA. So I only need to amend the MA state tax return, is this correct?

One Answer

There is no federal tax break for contributions into a 529 plan.

The only tax break on contributions is on the state level. Note that not all states offer a tax break, nor do they all have the same limits.

Yes the money contributed in Calendar Year 2021 will me claimed on your 2021 state tax forms you submit in April 2022.

According to the state of Massachusetts this is how you file an amended return:

Filing a personal income tax amended return

Individuals don't need any special form to file an amended return. You will simply need to submit a revised tax return. For tax years 2016 and after, you’ll find a new “Amended return” oval at the top of the form.

For earlier tax years, you can write “Amended return” at the top of your Form 1 or Form 1-NR/PY.

Your amended return must include all schedules filed with the original return, even if there are no changes to those schedules.

Please don't file Form ABT with your amended return or send a copy of your original return with your amended return.

You may be able to file your amended return electronically using third-party software. If filing on paper, mail your amended returns to the same address used for original returns.

Answered by mhoran_psprep on July 6, 2021

Add your own answers!

Ask a Question

Get help from others!

© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP