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No deduction would be allowed on your Alabama income tax return, and the income would be reported once it is withdrawn or distributed from that other state’s plan.
Yes, the amount withdrawn is added back to the contributing taxpayer’s return, plus a 10% penalty.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 full amount contributed into the 529 Plan can be deducted up to $5,000 per taxpayer. If you file Married filing Joint on your tax return, the maximum amount of $10,000 can be deducted.
An Alabama taxpayer filing jointly is eligible for an Alabama State income tax deduction of up to $10,000 for rollover contributions to the Alabama College Counts 529 Fund.
Earnings would not be taxed as long as the earnings remain in the qualifying plan, but would be taxed if a non‐qualified withdrawal is made.
A non‐qualified withdrawal is one that is not used for qualified higher education expenses as defined by IRC section 529.
Yes, the withdrawals are exempt under Alabama income tax.
The taxpayers may write one check for $10,000 that is from a joint checking account.
