M1-529: Education Savings Account Contributions Credit or Subtraction
Minnesota taxpayers who contribute to a qualified education savings account (commonly known as a 529 plan) may be eligible to claim either a credit or a subtraction on their state tax return. This benefit is reported using Schedule M1529, which must be attached to your Minnesota state tax return.
Eligibility and Key Rules
- You may claim either the Education Savings Account Contribution Credit or the Subtraction, but not both.
- You are not eligible for the credit if you are claimed as a dependent on another person’s tax return.
- You cannot claim the credit if you are a nonresident of Minnesota.
- The credit is nonrefundable, meaning it can only reduce your tax liability to zero.
How to Claim the Credit or Subtraction
To claim the benefit, complete Schedule M1529 and provide the following information for each account:
- Financial institution name
- Account number
- Contribution amount for 2025
If you contributed to more than five accounts, include a separate sheet listing additional accounts.
Reporting the Credit
If claiming the credit, enter the total amount on line 7 of Schedule M1C (Nonrefundable Credits). Schedule M1C must be included with your return, and you should also attach Schedule M1529.
Software Assistance
When filing your Minnesota state tax return using Online Taxes (OLT) software:
- Go to the State section in your return.
- Select "Start or Revisit Minnesota State."
- Navigate to the Deductions or Credits section and locate Schedule M1529.
- Follow on-screen instructions to enter your contribution details.
Important Notes
Source:
Schedule M1529, Education Savings Account Contribution Credit or Subtraction
Schedule M1C, Nonrefundable Credits
Form M1 Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.