SECTION 529 Education Saving account

Do we have to report it to IRS on form 1040?

No. Do check to see if your state offers some deduction or credit.

Phil Marti VITA/TCE Volunteer Clarksburg, MD

children. Do we have to report it to IRS on form 1040?

Also, depending on how much money you put into the account, you may have to file a gift tax return.

children. Do we have to report it to IRS on form 1040?

file a gift tax return.

Ok, yes, specifically, in 2013 the gift limit is $14,000. Deposit $14,000 or less and no gift tax or paperwork. If more than $14,000, but less than $70,000, you are using up to 5 year's gifting to make a front loaded deposit, i.e. permitted to gift in advance. A form 709 is required for reporting, but no tax due. If over $70K, you would be taking a credit against your unified lifetime credit of $5.25M and still no tax due. It's as simple as that. (Unless of course, I missed a minor detail.)

advance. A form 709 is required for reporting, but no tax > due.

Thanks for adding the details, I didn't know the annual limit off the top of my head, and wasn't somewhere I could look it up. Since the original poster said "we" and "children", it's probably worth emphasizing that the limits are per donor/recipient pair. So parents can put $28K per child in every year with little or no paperwork.