joans Posted March 30, 2009 Report Share Posted March 30, 2009 I have a TP that made 2 - 529 Contributions for their daughters. No clue whatsoever what it is. Anyone with any ideas? Please help:) Thanks Sara Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted March 30, 2009 Report Share Posted March 30, 2009 I found this link that may/may not help you. http://www.savingforcollege.com/top-tip/to...p?top_tip_id=10 Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 30, 2009 Report Share Posted March 30, 2009 I have a TP that made 2 - 529 Contributions for their daughters. No clue whatsoever what it is. Anyone with any ideas? Please help:) Thanks Sara Section 529 plans to save for college expenses, set up by the individual states. No deduction when the contribution is made. No tax due on growth when withdrawn for education purposes as delineated. Annual contribution limited to the amount of the annual gift exclusion with a provision to "front-load" up to five years' contribution provided no additional gifts from same donors made for five years. Contributions can be made by parents, grandparents, aunts, uncles, cousins, godparents, family friends -- anyone willing to put money to the kids' college. Some _states_ have tax benefits for contributions to their own state plans. Some of those plans have expenses that kill any tax benefit, some don't. Catherine Quote Link to comment Share on other sites More sharing options...
joans Posted March 30, 2009 Author Report Share Posted March 30, 2009 Thanks all!! I knew I came to the right place) Sara Quote Link to comment Share on other sites More sharing options...
joans Posted March 30, 2009 Author Report Share Posted March 30, 2009 Me again:) The link really helped & the information should go on a 709, but since it is less than the maximum amount, I don't need to file a 709. So I don't need to report this information on the tax return. Am I reading this correctly. Each daughter received $3000. Thanks again. Sara Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 30, 2009 Report Share Posted March 30, 2009 The plans are owned by the donors. The daughters are the beneficiaries. Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 30, 2009 Report Share Posted March 30, 2009 Me again:) The link really helped & the information should go on a 709, but since it is less than the maximum amount, I don't need to file a 709. So I don't need to report this information on the tax return. Am I reading this correctly. Each daughter received $3000. Thanks again. Sara Nothing reportable with facts as stated. Quote Link to comment Share on other sites More sharing options...
joans Posted March 30, 2009 Author Report Share Posted March 30, 2009 Yea - I like it when it is just informational:) Life is sweeter when less work in needed:) Thanks everyone. Sara Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 30, 2009 Report Share Posted March 30, 2009 Just do be careful about state rules. VA allows a deduction for amounts contributed to its 529 plan of $2000 per year per beneficiary (unless tp is over 70 years old, when they can take it all.) Quote Link to comment Share on other sites More sharing options...
joans Posted March 30, 2009 Author Report Share Posted March 30, 2009 Yes, WI did have a $3000/student limit:) Thanks Sara Quote Link to comment Share on other sites More sharing options...
cred65 Posted March 30, 2009 Report Share Posted March 30, 2009 It is entered on line 41 and flows to line 2 which reduces the OH taxable income and therefore the OH tax. Quote Link to comment Share on other sites More sharing options...
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