M1529: Education Savings Account Contribution Credit or Subtraction (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule M1529 calculates the credit or subtraction for contributions to qualified education savings accounts, commonly called 529 savings plans. It reports contributions and distributions and calculates an additional tax amount for certain distributions not used for qu
Who files this form
Complete 2025 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 2025, regardless of who owns the account or who the beneficiary is.
- If line 3, contributions minus the distributions included on line 2, is 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 calculate their credit using the percentage of income allocated to Minnesota on Schedule M1NR.
- You are not eligible for the credit if your federal adjusted gross income is more than $198,200 for married filing jointly, or $121,220 for other filing statuses. You may qualify for the subtraction.
Complete lines 7–15 if a distribution from your account was not used for qualified expenses. The line 7 instructions say not to include distributions subject to additional tax at the federal level.
What you'll need
- Your name and Social Security number.
- Each account's financial institution, account number, and the amount you contributed in 2025. Include a separate sheet if you contributed to more than five accounts.
- Records of 2025 distributions. These are generally reported on federal Form 1099-Q.
- Canceled checks and detailed contribution records, such as brokerage and account statements. Keep these as proof in case the department asks to see them.
- Form M1 and the applicable schedules: Schedule M1M for the subtraction, Schedule M1C for the credit, and Schedule M1NR for a part-year resident's credit calculation.
If you complete lines 7–15, you will also need records of prior-year education savings account credits and subtractions, contributions to your qualified accounts in all taxable years, and distributions not used for qualified expenses.
Keep a record of the credits or subtractions you claim while any education savings account is open.
Common mistakes
- Claiming both benefits. Choose either the credit or the subtraction, not both.
- Including transfers or rollovers on line 2. Do not include transfers or rollovers to other qualified accounts.
- Leaving out relevant distributions. Line 2 includes distributions from accounts you owned or contributed to during the year.
- Using only one account's history on lines 8 and 9. Include all prior credits on line 8 and contributions to all your qualified accounts on line 9, not just the account with an unqualified withdrawal.
- Including federally taxed distributions on line 7. Do not include distributions subject to additional tax at the federal level.
- Missing the rounding instructions. Round dollar amounts to the nearest whole dollar. Carry the ratios on lines 10 and 12 to five decimal places.
- Missing the checkbox. Include line 15 on line 14 of Form M1 and check the box for Schedule M1529.
Questions people ask
What counts as a qualified education savings account?
Any state-sponsored section 529 savings plan, including prepaid tuition plans.
How much is the subtraction?
The subtraction is the smaller of line 3 or $1,500, or $3,000 if married filing jointly. Enter it on line 4 and on 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 $96,220 or less, the credit generally provides the greater benefit. Use the Worksheet for Line 5 to calculate the credit.
Do K-12 expenses count as qualified expenses?
No. Qualified expenses are costs required to attend a post-secondary educational institution. They do not include K-12 expenses or certain post-secondary credentialing expenses reported on line 1 of Schedule M1NC. If you used a distribution for K-12 tuition, include the lesser of the distributions or the plan earnings reported on federal Form 1099-Q on line 13 of Schedule M1M.
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.