Grandparents contribute 529 to grand children every year.Their accounts were set up by their father. Can we deduct the contribution in my income tax or their father. We all lived in Pennsylvania. Thank you for your help.
Contributions to 529 plans are not deductible for federal tax purposes. I’m not familiar with Pennsylvania’s rules, but if they provide a deduction I would expect them to follow the principle that the deduction belongs to the person making the payment, not the person who set up the account.