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  • I understand that under Alabama Income Tax Law an amount up to $10,000 for taxpayers filing Married filing Joint can be deducted on your Alabama tax return if you contribute to a College Counts Alabama 529 Savings Plan, but does each taxpayer have to write a check for $5,000, or is one check for $10,000 from either spouse acceptable?
View All 529 Savings Plan, Income Tax FAQs

I understand that under Alabama Income Tax Law an amount up to $10,000 for taxpayers filing Married filing Joint can be deducted on your Alabama tax return if you contribute to a College Counts Alabama 529 Savings Plan, but does each taxpayer have to write a check for $5,000, or is one check for $10,000 from either spouse acceptable?

The taxpayers may write one check for $10,000 that is from a joint checking account.

Related FAQs in 529 Savings Plan, Income Tax

The postmark date will be accepted as the date of the contribution, as long as it is on or before December 31st. The contribution does not have to be received by the plan on or before December 31st.

Yes, once the withdrawal is made, it would be taxable on your Alabama income tax return.

No, the money is not taxable as long as the money is used to pay for higher education expenses.

No deduction would be allowed on your Alabama income tax return, and the income would be reported once it is withdrawn or distributed from that other state’s plan.

Yes, the amount withdrawn is added back to the contributing taxpayer’s return, plus a 10% penalty.

The rollover is exempt from Alabama income tax.