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Minnesota taxpayers can get a state tax deduction or credit (depends on income) for contributing up to $1,500 (single) or $3,000 (joint) a year, and it applies to any state's 529 plan. Here are the facts on Minnesota's direct-sold 529 plan (the one you open yourself, without an advisor).
During the 2017 legislative session, M.S. 290.0684 was enacted that provides a nonrefundable credit for net contributions to a qualifying 529 plan. M.S. 290.0132 Subd. 23 was also enacted to provide a Minnesota deduction (subtraction) for net contribution s to a qualifying 529 plan. Both benefits are effective for tax year 2017 and allow net contributions to in -state, and out -of-state plans. There does not need to be any specific relationship between the contributing taxpayer and the account beneficiary.oth B benefits will calculated on Schedule M1529,Education Savings Account Contribution Credit or Subtraction.Taxpayers are limited to claiming one of the benefits, but not both. Eligibility for the subtraction does not depend on residency or income. Claiming the subtraction disqualifies a taxpayer from claiming the credit. The subtraction is equal to net contributions up to $3,000 for
Summary of state law from the ICI 2025 state tax survey; it may predate 2026 changes.
2026 limits and parity: Savingforcollege. Manager, fees and minimum: only when stated on the plan's homepage text we read (2026-10-12); otherwise 'not found'. Check the plan's disclosure document for exact fees.
Yes: a deduction or credit (depends on income) for up to $1,500 (single) / $3,000 (joint) of contributions in 2026 It applies to any state's plan.
No. You can use any state's plan; you may lose your state's tax break if your state doesn't offer tax parity.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.