If a taxpayer contributes to a Virginia college savings plan a portion of the contribution can be subtracted from income on the Virginia return
If the taxpayer is under the age of 70, the subtraction of $4,000, or the amount paid during the taxable year for each prepaid tuition contract or a savings trust account entered into with The Virginia College Savings Plan. If the taxpayer paid more than $4,000 per contract or account during the year, undeducted amounts may be carried forward until the contribution has been fully deducted. If the taxpayer is age 70 or older, deduct the entire amount paid to the Virginia College Savings Plan during the year. Only the owner of record of an account may claim a deduction for contributions made.
To enter the deductible portion of the contributions that were made in the Desktop program, from the main menu of the Virginia return, select:
- Total Subtractions
- Other Subtractions
- Select VA College Savings Plan Income Distribution from the drop-down menu