Virginia 529 deduction after age 70

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Virginia 529 deduction after age 70

Postby kate1234 » Tue Jul 16, 2013 6:30 pm

Virginia's Code 58.1-322(D)(7)(c) says:

c. A purchaser of a prepaid tuition contract or contributor to a savings trust account who has attained age 70 shall not be subject to the limitation that the amount of the deduction not exceed $4,000 per prepaid tuition contract or savings trust account in any taxable year. Such taxpayer shall be allowed a deduction for the full amount paid for the contract or contributed to a savings trust account, less any amounts previously deducted.

And the instructions for the tax form 760 say:

If you are age 70 or older on or before December 31 of the taxable year, you may deduct the entire amount paid to the Virginia College Savings Plan during the year.

My question is, if the taxpayer is over 70 but has contributed to the 529 Plan a large enough amount to make his tax liability zero, whether he would be ALLOWED to carry forward a portion of the 529 contribution to reduce his tax liability in future years. Or, if he wanted to maximize his tax deduction, must he hold back on making the 529 contributions.
kate1234
 
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Joined: 17 Aug 2008

Re: Virginia 529 deduction after age 70

Postby kate1234 » Mon Jul 22, 2013 12:12 pm

I have the answer. I wrote to the Virginia Department of Taxation and here is what they said:

"A taxpayer age 70 or older on or before December 31 of the taxable year is not required to deduct the full amount paid to the Virginia College Savings Plan during the year.

"He may carry forward any undeducted amount until the purchase price has been fully deducted."
kate1234
 
Posts: 67
Joined: 17 Aug 2008


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