How do I enter contributions to a 529 qualified state tuition plan on a Gift Tax return using interview forms?
The steps below will check the election box on Form 709, Schedule A, line B.
- Go to Interview Form GIFT-1 - General Gift Information.
- In box 56 or 57 - X if elect under section 529(c)(2)(b) - override, enter X.
The program does not prorate these gifts. To manually prorate the gifts, do the following:
- Go to Interview Form Gift-4 - Gifts.
- In the Gift section, enter the portion of the gift to be included in the current year return as needed.
- Enter box 70 - Donee number.
- The above information flows to the Form 709 Pg 2, Schedule A, Part 1.
- Form 709 instructions list several items of information that must be reported when the 529 Election is made. Use Interview Form Gift-4 - Gifts, box 60 - Description, or Interview Form 7 - Estate and Gift Footnotes to prepare the required explanation.
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