Line 14: Iowa 529 or Iowa Advisor 529 College Savings Plan (Contributions)

If you or your spouse participate in the Iowa 529 Plan College Savings Plan or the Iowa Advisor 529 Plan, each may deduct an amount contributed not to exceed $5,800 per beneficiary. This deduction is only available for contributions to Iowa 529 plans.

You must be the "participant" in the Iowa 529 plan in order to deduct your contributions. If you are not the "participant" in the Iowa 529 plan, you may not deduct your contributions to that plan.

Example: Adam and Tara have 2 children; Charlie and Ruth. Adam opens two 529 accounts – one for Charlie and one for Ruth. Tara also opens two 529 accounts one for Charlie and one for Ruth. Both Adam and Tara can take up to $5,800 per child’s account. Adam and Tara each are eligible for a deduction of up to $11,600. Adam and Tara’s total potential deduction amount is $23,200.

Only contributions to these two Iowa 529 plans qualify for a deduction on the Iowa return; however, a rollover from another state's 529 plan to one of the Iowa plans qualifies toward the deduction for Iowa income tax. If you received a refund of any qualified higher education expenses from an eligible educational institution and recontributed the refund amount consistent with Iowa Code section 422.7(22)(c)(1)(f)(i), you may not deduct the recontribution amount when calculating your Iowa taxable income and the recontribution amount will not be considered when determining whether you have met the annual deduction cap.

Individuals making a contribution on or before the Iowa income tax return filing deadline (April 30 for calendar year tax filers), excluding extensions, can elect to have that contribution treated as though it was made on the last day of the preceding calendar year, which allows them to claim the income tax deduction for the most recently completed tax year.