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NEW FOR 2017 – Section 529 Plan Credit or Section 529 Plan Subtraction

Do you contribute to a college education (529) plan?  New in 2017, MN is now offering maximum of $500 non-refundable credit or subtraction for contributions.

The $500 nonrefundable credit is available in full for households with AGI of $75,000 or less.  It phases out for incomes between $75,000 and $160,000. 

If you take the credit, you can not qualify for the subtraction which is up to $1,500 for non-Married couples and $3,000 for married couples.  There is no income limitation for the subtraction.

Contributions do not need to be made to MN 529 plans, any qualifying 529 plan works.  It is not clear from legislation whether there are any limits on who the contributions are made by or for the benefit of.  Stay tuned for further details.

Forms are expected to be released in January.

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