Updated October 4, 2026. Quick answer: Yes, for Illinois plans. The 2025 Schedule M instructions let a taxpayer subtract 529 contributions up to $10,000, or $20,000 on a joint return, and the Illinois Treasurer’s page puts it “up to $10,000 for individuals and $20,000 for joint filers”.
What Illinois allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Subtraction on Schedule M |
| Limit | $10,000, or $20,000 if married filing a joint return |
| Plans that qualify | Bright Start, Bright Directions and College Illinois; other plans do not |
| Not-qualified withdrawals | The deductions claimed are added back |
| Source | Illinois Department of Revenue, 2025 Schedule M instructions; Illinois State Treasurer |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a Bright Start account for one child can subtract the whole $10,000, because the joint limit is $20,000.
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Only the Illinois programs qualify
The instructions are direct about other plans: “You may not subtract contributions made to any other” college savings program.
When the deduction comes back
A nonqualified withdrawal or refund requires you to “include the amount equal to the amount of deductions”. The same applies if you roll money out of Illinois: “rollover from an Illinois plan to another state’s plan” triggers it.
What the documents do not say
- Whether excess contributions carry forward to a later year.
What changes in 2026
No change for tax year 2026 appears in the 2025 instructions.
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
- Contributing to an out-of-state plan and expecting the Illinois subtraction.
Related: how Illinois taxes retirement income, whether Illinois taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- 2025 Schedule M (IL-1040) Instructions: https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-schedule-m-instr.pdf
- 2025 Form IL-1040 Instructions: https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-instr.pdf
- College Savings Programs for Illinois Families: https://www.illinoistreasurer.gov/Individuals/Bright_Start
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.