If a taxpayer contributes to a Minnesota section 529 college savings plan, they may be eligible for a nonrefundable credit against tax on their Minnesota individual income tax return.
Contributions of up to $500 per year are eligible for a Minnesota nonrefundable credit against tax. The credit is phased out when AGI exceeds the yearly credit amount. See the info at the Minnesota DOR website for the current year's phase-out amount.
To enter the deductible portion of the contributions that were made in TaxSlayer Pro, from the main menu of the Minnesota return select:
- Total Subtractions
- Additional Subtractions
- Contributions to a qualified education savings plan - Be sure to enter all the information needed requested. Also indicate if the taxpayer wants to receive a credit or a subtraction, but note that if the taxpayer cannot take the credit due to their tax liability being $0 after other credits are taken into account, TaxSlayer Pro will select the subtraction for you.
Additional Information: