Can I claim deductions for 529 contributions post-divorce with shared custody?

I'm newly divorced with shared custody of my son. My ex is now the account owner of what used to be our joint 529 college savings plan for our kid. According to our divorce settlement, we're both supposed to keep contributing to this 529, and I've got monthly automatic deposits set up. Now I'm second-guessing whether this arrangement makes sense tax-wise. I want to deduct these 529 contributions on my taxes, but I'm not sure if that's even possible since my ex officially owns the account. Are there ways to separate our contributions so we can each claim our own tax deductions? Or should I just open a completely separate 529 with me as the owner? Keeping everything in one account would be simpler, but not if it messes up my tax situation. I'd really appreciate any advice on this - sorry for being clueless about how 529s work with divorce situations!

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19 comments

Arnav Bengali

•8M

This is actually a really important question! First, it's important to understand that 529 contributions are generally not deductible on your federal return - they're made with after-tax dollars. However, many states do offer state income tax deductions or credits for 529 contributions. If your state offers deductions, then yes, ownership matters. In most states, only the account owner can claim the state tax benefit for contributions. Some states make exceptions for non-account owners, but that's not common. Since your ex is now the account owner, she would typically be the one eligible for state tax deductions on all contributions, even those you make. Opening your own 529 account with your son as beneficiary would let you claim any available state tax benefits for your contributions. You can have multiple 529 accounts for the same beneficiary with different owners. This is pretty common in divorce situations.

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Arnav Bengali

•8M

That's correct - 529 contributions are not federally tax-deductible. They're made with after-tax dollars, unlike traditional 401k contributions. The federal tax benefit of 529 plans comes from tax-free growth and tax-free withdrawals when used for qualified education expenses. For state taxes, about 30 states plus DC offer tax deductions or credits for 529 contributions, but the rules vary significantly by state. Some states only allow the account owner to claim the deduction, while others might allow any contributor to claim it regardless of ownership. It really depends on your specific state's rules.

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Rachel Tao

•8M

After my divorce, I had the exact same problem with our daughter's 529 plan. What really helped me was using taxr.ai (https://taxr.ai) to analyze my divorce decree and tax situation. Their AI tool reviewed my documents and gave me specific guidance on how the 529 contributions would be treated based on my state's rules. The site showed me that in my state, only the account owner gets the tax deduction, so I was basically giving my ex-wife tax benefits while getting none myself. The tool even highlighted specific language in my divorce decree that I could use to negotiate a fair arrangement. Saved me from making a costly mistake for years to come!

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Rachel Tao

•8M

You just upload your documents and the AI analyzes them - it can read through complex legal language and tax regulations and explain how they relate to your specific situation. It was surprisingly accurate with identifying the key points in my divorce decree that affected my 529 contributions. I ultimately decided to open my own separate 529 account with myself as owner and my daughter as beneficiary. This way I get the state tax deduction for my contributions, and we can coordinate with my ex on how much each of us contributes. It's slightly more administrative work having two accounts, but the tax savings made it completely worth it for me.

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Derek Olson

•8M

I tried taxr.ai after seeing this comment and it was actually super helpful! Uploaded my divorce decree and state tax info, and it pointed out that my state (Ohio) only gives tax deductions to account owners. The tool showed exactly how much I was leaving on the table each year by contributing to my ex's 529 instead of my own. Even better, it explained how to coordinate contributions with my ex without causing any gift tax issues. Just opened my own 529 account yesterday and feel much better knowing I'm not throwing away tax benefits anymore. Thanks for suggesting this!

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Roger Romero

•8M

If you're trying to get in touch with the 529 plan administrators to discuss your options, good luck getting anyone on the phone these days. After my divorce, I spent WEEKS trying to reach someone at our 529 provider to discuss splitting the account. Then I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c) - they got me connected to a real human at the 529 plan within 20 minutes. The rep walked me through all my options based on my state's rules and helped me understand how to properly document contributions from both parents when there are two separate accounts. Saved me so much frustration compared to playing phone tag and waiting on hold for hours.

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Roger Romero

•8M

They use technology that navigates through the phone systems and waits on hold for you. When they reach a real person, you get a call to connect you directly. It's basically like having someone wait on hold for you, but automated. Not at all a scam - they literally save you from spending hours on hold. I was skeptical too, but after spending three separate days trying to reach someone at the 529 provider and getting disconnected each time, I was desperate. With Claimyr, I was talking to an actual 529 plan representative in about 20 minutes while I continued working. It's just a time-saving service.

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Niko Ramsey

•8M

Just wanted to update - I was completely wrong about Claimyr. After more frustration trying to reach my state's 529 plan, I gave it a try yesterday. Within 15 minutes I was speaking with an actual customer service rep who helped me understand my options for creating a new account. Found out my state (Massachusetts) allows non-account owners to claim the deduction if they're the parent of the beneficiary, which means I could have been claiming deductions all along! The rep helped me document everything properly so I can claim past deductions on amended returns. Sometimes being proven wrong is actually a good thing. Saved me hours of frustration and potentially a lot of money.

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Seraphina Delan

•8M

Financial advisor here - a few more things to consider about your 529 situation: 1) Remember that a 529 can only have one owner at a time. The owner has full control over the account, including the ability to change beneficiaries or even withdraw funds (with penalties for non-qualified expenses). 2) If you're concerned about maintaining control over your contributions, definitely open your own account. This is extremely common in divorce situations. 3) Check your divorce decree carefully - sometimes there are provisions requiring the ex-spouse to provide statements showing contributions and growth. 4) Coordinate with your ex on investment strategies - you don't want one account taking high risks while the other is conservative.

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Seraphina Delan

•8M

There's no rule about which 529 account gets used first when your son attends college. Typically, you'd want to coordinate with your ex about this when the time comes. Some divorced parents agree to each pay a certain percentage of expenses, while others might agree to deplete one account before starting on the other. As for other implications, remember that having your own account gives you complete control over your contributions. If your ex were to use the funds inappropriately or change the beneficiary, you'd have no recourse with her account. With your own account, you maintain full control over your portion of the college savings.

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