If a taxpayer contributes to an Iowa 529 college savings plan, a portion of the contribution can be subtracted from income on the Iowa state tax return.
Contributions up to $3,439 per year, per beneficiary are eligible for an Iowa state income tax deduction.
Desktop - To enter the deductible portion of the contributions that were made in the Desktop program, from the main menu of the Iowa return, select:
- Net Income
- Total Adjustments
- Other Adjustments - Select New. Select College Savings Iowa or Iowa Advisor 529 Plan from the Adjustment dropdown menu. Enter the amount of the contribution. Do not enter more than $3,349 per beneficiary. To enter contributions made by the spouse, exit the taxpayer statement for Other Adjustments and select New at the Edit Spouse Statement for Other Adjustments Menu.
Additional Information: