529 withdrawals, tax credits questions

<p>mabel - happy to have helped! That $620 will give you a little extra cushion against all the crazy increasing food and gas prices. And meds - Filled one of my kid’s prescriptions the other day and it had gone up 13% just since February - ARGH!!</p>

<p>Post #10 (thanks mazewanderer!) in this thread <a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1082458-529-just-get-state-tax-deduction.html?highlight=529[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1082458-529-just-get-state-tax-deduction.html?highlight=529&lt;/a&gt;
gives info about each state. Here is the link: [529</a> Plan State Tax Deductions for 2009 – State Tax Deductions for Contributing to a 529 Plan](<a href=“http://collegesavings.about.com/od/section529account1/a/529stateded.htm]529”>States That Offer the Best 529 Tax Advantages)</p>

<p>(and yes, it’s Maryland I was thinking of that has the 10-year carry-forward for any given year - see post 24 by vballmom in the same thread. Per discussion in that thread, VA apparently has unlimited carry-forward, with a per-year limit of $4K)</p>

<p>Seems like in most states it’s a tax deduction, but in some it’s a credit (on a portion of the contributions).</p>

<p>We’re in NY and it’s a tax credit up to $10,000. I’ve already filed our taxes and received a refund which showed up on the 2010 fafsa. But thank you for the feedback and additional advice.</p>

<p>Isn’t it refunds of state tax that you <em>received</em> in 2010 from when you filed your 2009 taxes that you put on your 2010 tax return (and that count for the 2011-2012 FAFSA that we’ve all done recently or are just completing)? If you just received a state tax refund, that would go on <em>next</em> year’s 1040 (2011, since it was received in 2011).</p>

<p>Anyway, if one (not necessarily you, but anyone else here) were to re-do their state tax return (file an amended return) due to an additional 529 contribution, then the state would give an additional refund. (except for the poor Californians and some others!)</p>

<p>Correction/modification to something I posted earlier:</p>

<p>Not all states allow 529 contributions to be made up until April 15 (April 18 this year) of the following year. For many states, contributions must be made by the end of the calendar year, Dec. 31. Check the website of your state’s 529 plan or call them for details.</p>

<p>Sorry if anyone was misled by this.</p>

<p>MomCat2–yes, of course, you are correct. The refund was from 09 and reported on the 2010 return. I didn’t even think of that. But at this point with some much else going on, I’m just going to keep going forward and not worry about 2010.</p>