I have a QTP (529 plan) for my daughter. Are any of the contributions I made during the year able to be written off in whole or in part on my personal income taxes? If so, how/where would I do this...it is for tax year 2006. Thanks in advance!
2007-08-14 17:29:24 · 3 answers · asked by frozenfun 2 in Business & Finance ➔ Taxes ➔ United States
Contributions to your 529 plan are not deductible on your federal return. Distributions are tax-free if used for higher education.
Check with your state to see if your 529 contributions are deductible on your state return. Some states' plans allow a deduction to reduce state income tax.
2007-08-14 20:25:51 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
stable grief, Tro *AND* Bash are incorrect. mutually as the 529 plan is marketed to oldsters and grandparents, easily no longer something prevents one from beginning the account for oneself. although, the positioned up shows which you have did no longer draw close that the mark downs on a 529 plan are no longer pre-tax money, yet no longer paying tax on the earnings of the money interior the plan. The IRS does not supply you a tax deduction for investment the plan (nonetheless your state could). as an occasion, in case you're interior the 25% tax bracket and could use the $4000 deduction, you may keep $one thousand in tax. in case you place $18,000 right into a 529 and it earns $18 (that's what my financial business enterprise is paying), you may keep a whopping $4.50 and not even that because of the way the tax brackets artwork.
2016-10-15 09:30:35 · answer #2 · answered by ? 4 · 0⤊ 0⤋
No, the contributions aren't deductible.
2007-08-14 18:05:22 · answer #3 · answered by Judy 7 · 0⤊ 0⤋