If a taxpayer contributes to a Michigan 529 college plan, a portion of the contribution can be subtracted from income on the Michigan state tax return.
Contributions of up to $5,000 per year are eligible for a Michigan state income tax deduction for those filing a single return; and up to $10,000 per year for those filling a joint return.
To enter the deductible portion of the contributions that were made in the Desktop program, from the main menu of the Michigan return, select:
- Subtractions from Federal AGI
- MI Education Savings Program and MI 529 Plan- 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 $5,000, or $10,000 for MFJ filers.
Additional Information: