Anonymous
02/28/2014 11:56
Subject: Maryland 529 Plan carryover
Anonymous wrote:I am hoping someone can help me on this issue.
If I put a huge amount of money into the 529 plans for my 2 kids, I can only deduct $10k in my maryland tax return for DH and I. But the amount over $10k can be carryforward as a deduction for future years (up to 10 years). How do we keep track of this? Is this correct?
So for those of you that put in a huge amount like say $100k, do you just deduct the $10k each year even though you did it in year 1?
That's what I've been doing for the last 6 years.
Anonymous
02/27/2014 17:37
Subject: Maryland 529 Plan carryover
I bought 4 years for my kid. Should I have bought two and my husband bought two? Or is the prepaid deducted differently? I was told it was a max 2500 per kid per annul.
Anonymous
02/27/2014 08:59
Subject: Maryland 529 Plan carryover
I believe it's 2,500 per child/parent/account, which if you have four accounts (each parent has two, one for each child), then I think you can deduct up to $10,000 a year. My understanding is that you can carry forward along the same lines 2,500 per child/parent/acount. So you could do an additional 10,000 a year as long as the original payment was consistent with this (so you didn't put all 100,000 in one kid's account).
I believe the burden is on you to keep records. If you have a record of the initial deposit, that should suffice, just update it with the amount you are deducting each year.
I believe the burden is on you to keep records. If you have a record of the initial deposit, that should suffice, just update it with the amount you are deducting each year.
Anonymous
02/27/2014 08:58
Subject: Re:Maryland 529 Plan carryover
We put in a large amount and have deducted it bit by bit over the years. We have a file in which we have noted the original deposit (plus a few smaller deposits) and the amount deducted each year. There may be an upper limit on how much you can deduct, so check with a tax professional and/or read the fine print in the 529 contract.
Anonymous
02/27/2014 08:51
Subject: Maryland 529 Plan carryover
I am hoping someone can help me on this issue.
If I put a huge amount of money into the 529 plans for my 2 kids, I can only deduct $10k in my maryland tax return for DH and I. But the amount over $10k can be carryforward as a deduction for future years (up to 10 years). How do we keep track of this? Is this correct?
So for those of you that put in a huge amount like say $100k, do you just deduct the $10k each year even though you did it in year 1?
If I put a huge amount of money into the 529 plans for my 2 kids, I can only deduct $10k in my maryland tax return for DH and I. But the amount over $10k can be carryforward as a deduction for future years (up to 10 years). How do we keep track of this? Is this correct?
So for those of you that put in a huge amount like say $100k, do you just deduct the $10k each year even though you did it in year 1?