Education Savings Account Contribution Subtraction

You may qualify if these are true:

• You contributed to any state-sponsored section 529 college savings plan, including prepaid tuition plans. Contributions to qualified plans are eligible regardless of which state administers it.
• You made contributions to a qualified plan by December 31, 2023.

You may not claim the subtraction if you claim the Education Savings Account Contribution Credit.

Do I have to be the account owner or beneficiary to qualify?

No. You may claim this subtraction for your contributions to any qualifying account regardless of the owner or beneficiary.

Qualified expenses include costs required to attend a post-secondary educational institution. Amounts paid for K-12 education are not qualified expenses.

The maximum subtraction is $3,000 for Married Filing Jointly and $1,500 for all other filing statuses.

Complete Schedule M1529, Education Savings Account Contribution Credit or Subtraction, to determine this subtraction.

Note: You may need to pay back some or all of the benefits received if you claim this credit and use the account funds for nonqualified expenses. See Education Savings Account Recapture Tax.