Tax Information for Wisconsin Account Owners

Wisconsin taxpayers have until the tax filing deadline each year to make contributions to a Wisconsin 529 plan and claim a deduction on those contributions. Wisconsin taxpayers may only claim a deduction on contributions made to an Edvest 529 or Tomorrow’s Scholar plan. Tax deductible amounts are indexed annually for inflation.

The most current tax-year deductible amounts are reflected below and previous year's deductible amounts can be found on the Wisconsin Department of Revenue's College Savings Accounts webpage . Wisconsin Act 148 increased tax-deductible amounts and repealed the divorced parent deduction limitation beginning with the 2024 tax year. Wisconsin taxpayer have until the tax-filing deadline each year to make contributions to their Wisconsin 529 plan and claim a deduction.

2026 Tax Deductible Amounts: $5,280 per beneficiary for single filers or married filing joint, OR $2,640 per beneficiary for married filing separate.

2025 Tax Deductible Amounts: $5,130 per beneficiary for single filers or married filing joint, OR $2,560 per beneficiary for married filing separate.

Carry Forwar d: Contributions in excess of the maximum annual tax-deductible amount may be carried forward and applied in subsequent tax years, subject to annual limitations. Carry-over of contributions in excess of the maximum annual tax deduction threshold also must be added back to Wisconsin income if the carry-over amount was withdrawn from the account within 365 days of being carried over (365-Day Rule).

365-Day Rule: Withdrawals taken within 365 days of being contributed to an account must be added to Wisconsin income to the extent the contribution was previously deducted from Wisconsin income, or reduce available carry-forward. The Wisconsin 529 College Savings Program requires the use of a “first in, first out” method of accounting. Example : (1) Pat opens an account with $2,000 in December 2025 and deducts that amount on their 2025 tax return. In August 2026, $1,000 is withdrawn for qualified education expenses. Since the $1,000 had not been in the account for 365 days, $1,000 must be added back as taxable income on the following year's tax return. (2) Pat opens an account with $1,000 in August 2025, and then contributes $2,000 in December of 2025. In September 2026, $1,000 is withdrawn for qualified education expenses. In this case, the $1,000 withdrawal is considered as taken from the older money, outside of the 365-day window, and does not need to be added back as taxable income.

Distributions from an account to pay for qualified higher education expenses should be taken within the same calendar year expenses were incurred.

Schedule CS Tax Form: Contributions and distributions from a Wisconsin 529 plan (for qualified expenses and non-qualified expenses) are reported on the State of Wisconsin DOR Schedule CS, and attached to Form 1, the state income tax return. The schedule and instructions are at the Wisconsin Department of Revenue website .

Form 1099-Q : Annually, the Plan will issue a Form 1099-Q if any withdrawal is made from an account in the previous calendar year. Form 1099-Q shows the contributions and earnings portion (if any) for withdrawals made from your account. The Form 1099-Q recipient (which is deemed to be the Account Owner unless the withdrawal is paid to the Beneficiary or an eligible educational institution on behalf of the Beneficiary) is responsible for determining whether the earnings portion of the withdrawal is taxable, for retaining appropriate documentation to support this determination, and for appropriately reporting earnings on his/her federal and Wisconsin income tax forms.

Rollovers: Rollovers from other state's 529 plans into an Edvest 529 or Tomorrow's Scholar plan are accepted. For the 2015 and following taxable years, rollovers of principal portion (or contributions portion) may qualify for reducing your Wisconsin taxable income, including carry-forward for subsequent years; however, the portion attributed to growth is not eligible for a tax deduction on your Wisconsin income taxes. Rollovers from one Wisconsin college savings plan account into another Wisconsin college savings plan account are not eligible for the subtraction from income.

Special Rollover to Roth IRAs from Long-Term Qualified Tuition Programs : Wisconsin taxpayers may rollover funds from a Wisconsin 529 college savings plan to a Roth IRA without incurring federal or Wisconsin income tax or penalties, subject to the following conditions :

The Account must have been open for 15 or more years, ending with the date of the rollover;

The rollover is into a Roth IRA maintained for the benefit of the Beneficiary on the 529 Account ;

Contributions and associated earnings that you transfer to the Roth IRA must have been in the Account for more than 5 years, ending with the date of the rollover;

The rollover does not exceed the lifetime maximum amount of $35,000 per designated beneficiary to be rolled over from 529 plan accounts to Roth IRAs; and

The rollover is sent directly to the Roth IRA

Note: Roth IRA income limitations are waived for 529 plan rollovers to Roth IRAs; however, a Roth IRA contribution is subject to the Roth IRA contribution limit for the taxable year applicable to the Beneficiary for all individual retirement plans maintained for the benefit of the Beneficiary.

The IRS is expected to issue additional guidance that may impact 529 plan account rollovers to Roth IRAs, including the above referenced conditions . Account Owners and Beneficiaries should consult with a qualified tax professional before withdrawing funds for any such rollovers. Please contact your Roth IRA administrator directly to determine their ability and requirements to receive a 529 rollover.

Maximum Account Contribution Limit:

IRS Publication 970: Published by the Internal Revenue Service (IRS), Publication 970 provides information on tax benefits available to students and families saving or paying for college. Review for more information.