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Author: StockGoddess Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121112  
Subject: 529 Tax Deduction Date: 3/14/2012 2:18 PM
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DH and I have twins, so we had to open TWO 529 plans to pay for their college expenses (since they'll be in college at the same time and we can't transfer it back and forth)

We want to contribute to get the state tax deduction described here:

http://collegesavings.about.com/od/statetaxdeductions/a/alab...

What it says is "$5000 per taxpayer, or $10K for a married couple".

Is that $5K per taxpayer, or $5K per taxpayer PER KID? I don't think it's very clear. They never seem to think of things like twins when they write laws...is there somewhere I can find the actual statute? My financial person thought it was "per kid" but this article doesn't say.
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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115493 of 121112
Subject: Re: 529 Tax Deduction Date: 3/14/2012 2:37 PM
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Is that $5K per taxpayer, or $5K per taxpayer PER KID? I don't think it's very clear.

Rather than try to guess what it means by looking at an article about it, find the spot where it goes on the Alabama state tax form, and read the instructions.

Most likely it's $5k per taxpayer. So whether you have 2 kids or 10, I'd bet it is $10K for you and your spouse.

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Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115494 of 121112
Subject: Re: 529 Tax Deduction Date: 3/14/2012 2:41 PM
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Is that $5K per taxpayer, or $5K per taxpayer PER KID? I don't think it's very clear. They never seem to think of things like twins when they write laws...is there somewhere I can find the actual statute? My financial person thought it was "per kid" but this article doesn't say.

From what I saw on Alabama's website, it is $5000 per taxpayer. For a married couple, it would be $10,000 max. I don't know why there would be anything different for twins since there are plenty of multiple-kid families without twins.

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115495 of 121112
Subject: Re: 529 Tax Deduction Date: 3/14/2012 6:02 PM
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DH and I have twins, so we had to open TWO 529 plans to pay for their college expenses (since they'll be in college at the same time and we can't transfer it back and forth)

We want to contribute to get the state tax deduction described here:

http://collegesavings.about.com/od/statetaxdeductions/a/alab......

What it says is "$5000 per taxpayer, or $10K for a married couple".

Is that $5K per taxpayer, or $5K per taxpayer PER KID? I don't think it's very clear. They never seem to think of things like twins when they write laws...is there somewhere I can find the actual statute? My financial person thought it was "per kid" but this article doesn't say.


The deduction is on your income tax return for money that you contribute to an AL 529 plan. There is no restriction on the number of plans you can contribute to, just on the total amount that you can deduct on your AL income tax.

Ira

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