Minnesota Residents May Receive a Subtraction for 529 College Savings Plan Contributions

Minnesota made a change on August 29th, 2017 that may allow Minnesota residents a subtraction for qualified 529 College Savings Plan Contributions.
Individuals who contribute to a Section 529 College Savings Plan may be eligible for a subtraction from income up to $1,500 ($3,000 for married couples filing joint returns).

When is this subtraction available?

The Section 529 Plan subtraction is available beginning tax year 2017.

Do I qualify for this subtraction?

If you contribute to a Section 529 Plan, you may claim this subtraction. However, if you claim the Section 529 Plan Credit, you cannot claim the subtraction.

Do I have to contribute to a Minnesota plan?

No. Many states offer 529 College Savings Plans. Contributions to a qualifying account are eligible regardless of which state administers the plan.

How much is the subtraction?

Taxpayers filing single, head of household, or married filing separate may qualify for a subtraction up to $1,500. Married couples filing joint returns may qualify for up to $3,000.

How do I file this subtraction?

Eligible taxpayers should complete Schedule M1529, Education Savings Account Contribution Credit or Subtraction, to determine this subtraction.

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