Updated October 4, 2026. Quick answer: Yes. DC’s Schedule I says “You may deduct up to $4,000 annually for contributions” to a DC 529 plan, with an $8,000 figure for eligible joint filers.
What Washington DC allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Deduction on Schedule I of the D-40 |
| Limit | $4,000 per account owner; $8,000 for eligible joint filers |
| Carryforward | Excess may be carried forward, subject to the annual limit, for up to five years |
| Plans that qualify | A qualified DC 529 plan; the documents read do not address other states’ plans |
| Not-qualified withdrawals | A nonqualified withdrawal, or a transfer to another state’s program within two years of opening the account, recaptures the deduction |
| Source | DC Office of Tax and Revenue, 2023 Schedule I; DC College Savings Plan |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a DC 529 account for one child can deduct $8,000 if each spouse owns an account, the joint figure on Schedule I. The other $2,000 earns no deduction this year.
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Carryforward and recapture
Excess contributions “may be carried forward as a deduction (subject to the annual limitation)” for up to five years. The plan’s own page says the deduction is recaptured on a transfer to another state’s program “within two (2) years of opening the account”.
What the documents do not say
- Whether contributions to another state’s plan qualify.
- The most recent official Schedule I archived for this page is the 2023 edition; a later edition was not available from the Office of Tax and Revenue.
What changes in 2026
No change for tax year 2026 appears in the documents read for this page.
Federal rules
A state break sits beside the federal rules for 529 plans: the statute is 26 U.S.C. 529 and the IRS explains it in Publication 970, Tax Benefits for Education.
Common mistakes
- Treating a rollover distribution as a new contribution; it does not count.
Related: how Washington DC taxes retirement income, whether Washington DC taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- 2023 Schedule I, Additions to and Subtractions from Federal Adjusted Gross Income (D-40 instructions): https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2023_SCH%20I_Final_011924.pdf
- 529 basics: https://www.dccollegesavings.com/home/about/529-basics.html
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.