Article: 50157
Overview
Alabama residents who make contributions to the Alabama Prepaid Affordable College Tuition (PACT) Program or the Alabama College Counts 529 Savings Plan may be eligible for a state income tax deduction.
Taxpayers may deduct up to $5,000 per year ($10,000 for married couples filing jointly) for qualifying contributions made to either or both of these education savings programs.
Reporting of Alabama College Counts 529 Plan and Prepaid Affordable College Tuition Program (PACT) Deduction data entry
To report the eligible payment contributions for the Alabama College Counts 529 fund or PACT deduction during the tax year, follow the steps below:
- Go to the State taxes section.
- Select I’d like to see the forms I’ve filled out or search for a form.
- In the drop list, select Alabama.
- Select the General tab.
- Select the 40 – Income Tax Return – Pg 2 screen.
- Enter the contribution amount on line Payments to Alabama College Counts 529 Fund or AL PACT Deduction under Part II.
- Click Save to apply changes.
Additional Information
See the Alabama Form 40 instructions for more information.