If a taxpayer contributes to an Arkansas Gift 529 college plan, a portion of the contribution can be subtracted from income on the Arkansas return.
Contributions up to $5,000 per year are eligible for an Arkansas state income tax deduction for those filing a single return; and $10,000 per year for those filling a joint return.
To enter the deductible portion of the contributions that were made in TaxSlayer ProWeb, from the main menu of the Arkansas return, select:
- Subtractions from Income
- Miscellaneous Subtractions
- Tax Deferred Tuition Savings Program (all the way at the bottom) - Enter all required information. 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 for the taxpayer and $5,000 for the spouse.
Additional Information:
Arkansas State Tax Information
Arkansas Gift 529 College Plan