M1529: Education Savings Account Contribution Credit or Subtraction (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule M1529 reports your 2024 qualified education savings account (529 plan) contributions and distributions to calculate either an education savings credit or subtraction. You cannot claim both. It also calculates additional tax for distributions not used for qualif
Who files this form
Use 2024 Schedule M1529 to claim either the Education Savings Account Contribution Credit or the subtraction. You cannot claim both.
- You may qualify if you contributed to a qualified education savings account in 2024, regardless of who owns the account or who the beneficiary is.
- If your contributions minus the distributions counted on line 2 are zero or less, you do not qualify.
- Nonresidents and people eligible to be claimed as dependents cannot claim the credit, but may qualify for the subtraction.
- Part-year residents adjust their credit using the percentage of income allocated to Minnesota on Schedule M1NR.
Complete lines 7–15 if a distribution from your account was not used for qualified expenses. The line 7 instructions exclude distributions subject to additional tax at the federal level.
What you'll need
- Contribution records: Financial institution names, account numbers, and amounts contributed in 2024. Include a separate sheet if you contributed to more than five accounts.
- Proof of contributions: Save canceled checks and detailed records, such as brokerage and account statements. The department may ask to see them.
- Distribution records: Distributions are generally reported on federal Form 1099-Q.
- Related tax forms: Schedule M1M for the subtraction, or the Worksheet for Line 5 and Schedule M1C for the credit. Part-year residents also use Schedule M1NR to adjust the credit. The credit worksheet uses line 1 of Form M1.
- Prior-year records, if completing lines 7–15: Credits previously claimed on Schedule M1C, subtractions previously claimed on Schedule M1M, and contributions made to all your qualified accounts in all taxable years.
Keep a record of credits or subtractions claimed while any education savings account remains open.
Common mistakes
- Claiming both benefits: You may claim the credit or the subtraction, not both.
- Including transfers or rollovers on line 2: Do not include transfers or rollovers to other qualified accounts.
- Treating K-12 expenses as qualified expenses: They are not qualified expenses for this schedule. If a distribution paid K-12 tuition, include the lesser of the distributions or the earnings reported on federal Form 1099-Q on line 13 of Schedule M1M.
- Counting only one account when completing lines 8 and 9: Include all prior credits on line 8 and contributions to all qualified accounts on line 9, not just the account with an unqualified distribution.
- Overlooking rounding instructions: Round dollar amounts to the nearest whole dollar. Carry the ratios on lines 10 and 12 to five decimal places.
Questions people ask
What counts as a qualified education savings account?
Any state-sponsored section 529 savings plan, including a prepaid tuition plan.
What expenses qualify?
Costs required to attend a post-secondary educational institution. K-12 education expenses do not qualify.
How much is the subtraction for 2024?
The subtraction is the lesser of line 3 or $1,500, or $3,000 if married filing jointly. Enter it on line 4 of Schedule M1529 and line 15 of Schedule M1M.
Is the credit or subtraction better for me?
It depends on your Minnesota residency, filing status, and income. For full-year and part-year residents with federal adjusted gross income of $93,610 or less, the instructions say the credit generally provides a greater benefit. Use the Worksheet for Line 5 to calculate the credit.
Where can I ask questions?
Visit www.revenue.state.mn.us and search for “Education Savings,” email individual.incometax@state.mn.us, or call 651-296-3781 or 1-800-652-9094.