Hello Fools,
I have three 529 accounts. In 2020 I exceeded Virginia’s 4000 limit on one of the accounts and as tax instructions I am allowed to carry forward the remaining amount on 2021.
Using TaxAct plus reviewing the actual VA 760 form I do not see anywhere I put the 2020 carry forward difference
I am assuming it would be the one account I exceeded which would be 2021 value + 2020 carry forward value. Now if I am correct what if the this entry exceeds 4000 again? Is it just perpetual carry forwards until exhausted?
Thanks here the 2021 instructions on this
104 Virginia529 Account Contributions - If you are under age 70 on or before December 31 of the taxable year, enter the lesser of $4,000 or the amount contributed during the taxable year to each Virginia529 account (Virginia 529 prePAID, Virginia 529 inVEST, College America, CollegeWealth). If you contributed more than $4,000 per account during the taxable year, you may carry forward any undeducted amounts until the contribution has been fully deducted. However, if you are age 70 or older on or before December 31 of the taxable year, you may deduct the entire amount contributed during the taxable year. Only the owner of record for an account may claim a deduction for contributions made.
JTS