Article: 50555
Overview
If you made contributions to a qualified 529 education savings account during the tax year, you may be eligible for a Minnesota state income tax credit or subtraction. This benefit helps reduce your tax burden for contributing toward future education expenses.
To claim it, you will need to complete the 529 – Education Savings Account form in your Minnesota return, which corresponds to Schedule M1529.
What Is a 529 Plan?
A 529 plan is a tax-advantaged savings account designed to encourage saving for future education costs. Contributions may qualify for:
- A nonrefundable credit, or
- A subtraction from your income, depending on your income level and contribution amount.
Note: Contributions must be made to a Minnesota-qualified 529 plan or a qualifying out-of-state plan used for a beneficiary’s education.
Tips for Filing
- The maximum credit is $500 per return (subject to phaseout based on income).
- If you do not qualify for the credit, you may be eligible to claim a subtraction of up to $1,500 ($3,000 for MFJ).
- Contributions must have been made by December 31 of the tax year.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Minnesota.
- Click on the Other tab.
- Select 529 – Education Savings Account to open the screen.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For further guidance, see:
2024 Schedule M1529 – Education Savings Account Credit/Subtraction Instructions (PDF)