Question for those who use TaxAct (state) and have a 529 plan: does TaxAct correctly handle the 529 deduction, if one exists?
The reason I am asking is because NC recently changed its tax law and allows you to deduct up to $5K from your income if you have a 529 plan. I use TaxAct and can't find such a deduction on the "state" version of the program. In case other folks from NC read this, the deduction is on line 48 of the paper tax form.
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I used the TaxAct state version for Utah over the weekend. It correctly handled the deduction. The 529 plan sent me a tax document with the calculation for the amount I could deduct (4.5 % of the contribution amount, if I remember correctly). I put that number in for the 529 line-item, and it added that amount to my refund.
Hope this helps... I'm a brand new member... first post!
Axtec, welcome to this board. It is by far the most professional and helpful board that I've ever been on.
And thank you for your reply. It prompted me to go back into TaxAct and scrutinize all the screens. I finally found the 529 deduction in the NC version, and it was semi-hidden on the same screen as "Taxable Portion of SS or Railroad Retirement Benefits." No wonder I missed it...
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