Minnesota Statutes Various State Taxes and Programs (Ch. 289A-295) § 290.0684. plan credit

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given them.

(b) “Contribution” means the amount contributed to one or more qualified accounts except that the amount:

(c) “Adjusted gross income” has the meaning given undersection 62(a) of the Internal Revenue Code. 1

(d) “Qualified account” means an account qualifying undersection 529 of the Internal Revenue Code.

Subd. 2. Credit allowed. (a) An individual who is a resident of Minnesota is allowed a credit against the tax imposed by this chapter. The credit is not allowed to an individual who is eligible to be claimed as a dependent, as defined insections 151and152 of the Internal Revenue Code. The credit may not exceed the liability for tax under this chapter.

(b) The amount of the credit allowed equals 50 percent of contributions for the taxable year. The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no case is the credit less than zero.

(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross income in excess of $78,340.

(d) For married couples filing a joint return, the maximum credit is phased out as follows:

(e) The commissioner shall annually adjust the income thresholds in paragraphs (c) and (d) as provided insection 270C.22. The statutory year is taxable year 2019.