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Moving to a different state: Any effect on the amount of 529 contribution I can deduct from state taxes?

Posted: Fri May 01, 2020 11:22 am
by katnok
We are relocating from PA to a different state this June. PA allows 529 contributions up to $15,000/kid/parent to be deducted from state taxes.
Given the fact that we will be living in PA only half the year, will I still be able to deduct the maximum allowed per year from my 2020 taxes (to be filed in 2021)?

Thanks.

Re: Moving to a different state: Any effect on the amount of 529 contribution I can deduct from state taxes?

Posted: Fri May 01, 2020 11:51 am
by FiveK
Is there anything in the instructions for the line on which the deduction is taken for part-year residents?

Re: Moving to a different state: Any effect on the amount of 529 contribution I can deduct from state taxes?

Posted: Fri May 01, 2020 12:36 pm
by katnok
FiveK wrote: Fri May 01, 2020 11:51 am Is there anything in the instructions for the line on which the deduction is taken for part-year residents?
No, I haven't seen anything related to it.

Re: Moving to a different state: Any effect on the amount of 529 contribution I can deduct from state taxes?

Posted: Fri May 01, 2020 1:25 pm
by FiveK
katnok wrote: Fri May 01, 2020 12:36 pm
FiveK wrote: Fri May 01, 2020 11:51 am Is there anything in the instructions for the line on which the deduction is taken for part-year residents?
No, I haven't seen anything related to it.
If the instructions don't say anything about apportioning the contributions, then it is reasonable to assume whatever you contribute is as deductible as if you were a full year resident.

Re: Moving to a different state: Any effect on the amount of 529 contribution I can deduct from state taxes?

Posted: Fri May 01, 2020 2:12 pm
by lthenderson
I do know some states prorate deductions and credits based upon income ratio between states of residence. I don't know how Pennsylvania falls on this issue.

Re: Moving to a different state: Any effect on the amount of 529 contribution I can deduct from state taxes?

Posted: Fri May 01, 2020 7:50 pm
by rkhusky
Maybe you can contribute to the new state’s 529 and double up your contribution.