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Last Updated: 8/29/2017

Section 529 Plan Credit

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​Minnesota residents that contribute to a Section 529 College Savings Plan may be eligible for a nonrefundable credit up to $500.
 

When is this credit available?

The Section 529 Plan Credit is available beginning tax year 2017.
 

Do I qualify for this credit?

This credit is available to Minnesota residents and part-year residents who contribute to a qualified Section 529 College Savings Plan and meet certain income guidelines.
 

How much is the credit?

The credit is a maximum of $500 or 50% of contributions made during the year.
 
This credit phases out for taxpayers with an Adjusted Gross Income over $75,000.
 ​If your filing status is ​ And your Adjusted Gross 
 Income (AGI) isIncome (AGI) is
​ Your maximum credit is
 Single, head of household, 
 married filing separate


​ less than $75,000 ​ $500
​ between $75,000 and
 $100,000
​ $500 reduced by 2% of AGI 
 exceeding $75,000
​ more than $100,000 ​ $0 (You are not eligible)
 Married filing jointly​ ​



 

​ ​ ​
​ less than $75,000 ​ $500
​ between $75,000 and $100,000 ​ $500 reduced by 1% of AGI
 exceeding $75,000
​ between $100,000 and $135,000 ​ $250
​ between $135,000 and $160,000 ​​ $250 reduced by 1% of AGI
 exceeding $135,000
​ more than $160,000 ​ $0 (You are not eligible)

Do I have to contribute to a Minnesota plan?

No. Many states offer Section 529 College Savings Plans. Contributions to a qualifying account are eligible regardless of which state administers the plan.
 

How do I file for this credit?

Eligible taxpayers should complete Schedule M1529, Education Savings Account Contribution Credit or Subtraction, to file this credit. Visit our website in January 2018 for tax year 2017 forms and instructions.