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Frequently Asked Questions

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Category /Tax
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Is a contribution to an Alabama 529 Savings Plan with a December 2010 postmark deductible on my 2010 Alabama tax return, or does it have to be received by the plan before December 31st to be deductible on my Alabama tax return?
Is the money from my ” Florida 529 Savings Plan” taxable if it is used to pay for my son’s higher education expenses?
If the money from my Alabama 529 Savings Plan is used to pay for my son’s expenses at an out of state college, will it be considered taxable?
What are the tax consequences on 529 plans that are purchased outside of Alabama?
Does Alabama income tax law recapture previously deducted contributions when withdrawing money from my Alabama 529 Savings Plan for non‐qualified reasons?
When rolling over an out of state 529 plan to an Alabama qualifying plan, is the roll over into the Alabama qualifying plan (both the contributions and earnings portion) exempt from any current year Alabama income tax?
If I roll $7,500 into the Alabama 529 Savings Plan (contributions/basis equals $6,000 and the earnings portion equals $1,500), can I deduct the full $7,500 on my tax return or only the amount I contributed?
Is a rollover from an out‐of‐state qualified 529 plan into another qualifying Alabama 529 plan by an individual that files a joint Alabama State income tax return eligible for an Alabama State income tax deduction of up to a $5,000 or $10,000?
If I roll my money from a qualified 529 plan into another qualifying Alabama 529 plan, is the money exempt from Alabama taxes?
What is a non‐qualified withdrawal from an Alabama 529 Savings Plan?
Are qualified 529 Saving Plan withdrawals exempt from Alabama income tax?
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?