Author Topic: Moving MidYear - Can I contribute and deduct from two state 529 plans?  (Read 1361 times)

savedough

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We are moving this year.  Our current state allows a $3000 deduction per taxpayer and we plan make a $6000 contribution to the kids' 529 prior to our move.    Our future state allows $4000 deduction per beneficiary no matter whether filing jointly or separately.  In our case this is $12000 (3 kids).

Can I contribute $6000 to deduct from our State 1 taxes and then contribute $12000 to deduct from State 2 income taxes?  (A total of $18000 in contributions timed to correspond to our residency in each state).

Spare me the why do you have a 529 discussion please.   Clearly we've already crossed that bridge. :)

Paul der Krake

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Unless there are some stipulations in your states' tax laws say otherwise, I don't see why not.

Usually you are taxed, and can get tax goodies, on the income earned while you were a resident of a state. So it would make sense that you could get that deduction if you contribute to a state's 529 while you are a resident, e.g. to contribute to state A's plan after you've established residency in state B.

Read the relevant income tax forms and instructions to confirm.

savedough

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I'm not sure where to find the relevant tax forms...

Paul der Krake

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Which states are you looking at? Find their respective income tax returns forms, search for 529 and go from there.