If a taxpayer contributes to an Illinois 529 College Savings Program, a portion of the contribution may be eligible to subtracted from income on the Illinois return.
Contributions up to $10,000 per year are eligible for an Illinois state income tax deduction for those filing a single return; and $20,000 per year for those filling a joint return.
Desktop - To enter the deductible portion of the contributions that were made in the Desktop program, from the main menu of the Illinois return, select:
- Base Income (Income - Subtractions)
- Other Subtractions to Income
- Do you wish to complete Schedule M? - Yes
- Figure Subtractions
- Contributions to Bright Star, Bright Directions, and/or College - Select New. Enter the Account Number and the Contribution Amount. Indicate whether the contribution was a gift.
ProWeb - To enter the deductible portion of the contributions that were made in TaxSlayer ProWeb, from the main menu of the Illinois return, select:
- Subtractions from Income
- Additions and Subtractions to Income on Schedule M
- Schedule M Other Subtractions
- Contributions to "Bright Start" and "Bright Directions" College Savings Programs and "College Illinois" Prepaid Tuition Program
- Add Contribution - Enter the Account Number and the Contribution Amount.