[Revenews] 529/ABLE Account Subtraction Deadline

[BALL Shannon * DOR]

With the passage of HB 2164 during the 2019 Legislative Session, the deadline to make contributions to a 529 College Savings Plan or an ABLE account and still qualify for the subtraction is December 31, 2019.  Tax year 2019 is the last year the contributions will qualify for the subtraction; however, contributions made in 2019 and prior can still be carried forward up to four years.

Contributions made January 1, 2020 and forward will qualify for the new 529/ABLE account refundable credit.  The refundable credit amount is based on filing status and AGI.  The deadline to make the contributions for the new refundable credit is the earliest of the filing due date, without regards to extension, or the date the return is filed.  The credit is the lesser of $300 (MFJ), $150 for all other filing statuses, or:
(a)     The amount contributed, if the taxpayer's adjusted gross income does not exceed $30,000;
(b)     50 percent of the amount contributed, if the taxpayer's adjusted gross income exceeds $30,000 but does not exceed $70,000;
(c)     25 percent of the amount contributed, if the taxpayer's adjusted gross income exceeds $70,000 but does not exceed $100,000;
(d)     10 percent of the amount contributed, if the taxpayer's adjusted gross income exceeds $100,000 but does not exceed $250,000; or
(e)     5 percent of the amount contributed, if the taxpayer's adjusted gross income exceeds $250,000.


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