If a taxpayer contributes to a Massachusetts 529 college plan, a portion of the contribution can be subtracted from income on the Massachusetts state tax return.
Contributions up to $1,000 per year are eligible for a Massachusetts state income tax deduction for those filing a single return; and $2,000 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 Massachusetts return, select:
- 5.0% Deductions
- Other Deductions
- Prepaid Tuition - Enter the deductible amount* of the contribution that the taxpayer and spouse, if applicable made to the plan.
*If the contribution amount was more than the deductible limit, do not enter more than $1,000, or $2,000 for MFJ filers.
Additional Information: