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 ProWeb, from the Minnesota Return menu select:
- Subtractions from Income
- Education Savings Account Contribution
Note that a subtraction will be chosen instead of a credit if the taxpayer cannot take the credit due to their tax liability being $0 after other credits are taken into account.
Additional Information: