529 contributions in Minnesota
Varies
Are 529 Contributions Tax Deductible in Minnesota?
Short answer: Yes on your Minnesota return: Subtraction $1,500 single / $3,000 joint, or 50% credit up to $500 (phases out above $98,410 AGI). Contributions to any state's 529 plan count. Tax parity; choose credit or subtraction, not both. MN treats K-12 tuition withdrawals as nonqualified, triggering recapture.
There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Records to keep: Keep receipts, statements, and a note of what each cost was for. Compare itemizing to the 2026 standard deduction ($16,100 single / $32,200 joint) before you claim.
529 contributions in Minnesota
Varies
Individuals / Personal Taxes
Yes on your Minnesota return: Subtraction $1,500 single / $3,000 joint, or 50% credit up to $500 (phases out above $98,410 AGI). Contributions to any state's 529 plan count. Tax parity; choose credit or subtraction, not both. MN treats K-12 tuition withdrawals as nonqualified, triggering recapture.
Business justification
Yes on your Minnesota return: Subtraction $1,500 single / $3,000 joint, or 50% credit up to $500 (phases out above $98,410 AGI). Contributions to any state's 529 plan count. Tax parity; choose credit or subtraction, not both. MN treats K-12 tuition withdrawals as nonqualified, triggering recapture. There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Category
- Personal Tax Deductions