Tax Experts

Can I Deduct 529 Contributions?

By Kevin McCormally, Editorial Director, Kiplinger.com

April 2008

Q: In 2007, I contributed $4,800 to the VA 529 plan. Can I deduct this amount (or any of it) on my 1040 and VA tax return? -- Tram T.

Kevin's Answer

There is no federal deduction for 529 contributions.

However, the state of Virginia does allow a state income tax deduction for contributions to a 529 college savings plan. The account owner may deduct up to $2,000 a year (and any part of a contribution not allowed due to the $2,000 cap may be deducted in future years). Also, the $2,000 cap does not apply to account owners age 70 and older. (See which states allow a tax deduction.)

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