Where Do I Enter Contributions to a Vermont 529 VHEIP Plan?
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If a taxpayer contributes to a Vermont VHEIP college savings plan a portion of the contribution can be subtracted from income on the Vermont return.
The credit applies to contributions made to the Vermont Student Assistance Corporation higher education investment plan. The credit equals 10% of the first $2,500 contributed per beneficiary. For jointly filed returns, each spouse can contribute to a beneficiary's account and each spouse may claim the credit for his or her contributions. Principal amounts (not earnings) rolled over from another state’s 529 plan are also eligible for credit. Funds must remain in the Vermont plan for the remainder of the tax year to qualify for the credit.
To enter the deductible portion of the contributions that were made in Tax Processors Plus Online, from the main menu of the Vermont return, select:
- Credits
- VT IN-119 Tax Credits
- VT Higher Education Investment
Additional Information: