Updated October 4, 2026. Quick answer: Yes, for Michigan plans. The 2025 Schedule 1 instructions let a taxpayer deduct up to “$5,000 for a single return or $10,000 for a joint return” for contributions to the Michigan Education Savings Program or the MI 529 Advisor Plan.
What Michigan allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Deduction on Schedule 1 |
| Limit | $5,000 for a single return or $10,000 for a joint return, for MESP and MI 529 Advisor Plan accounts combined |
| Plans that qualify | Michigan 529 programs; amounts transferred from another 529 plan are not eligible |
| Not-qualified withdrawals | Added back on Schedule 1 (line 8) |
| Source | Michigan Department of Treasury, 2025 Schedule 1 instructions; Michigan Education Savings Program FAQ |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a Michigan Education Savings Program account can deduct the whole $10,000, because the joint limit is $10,000.
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What does not qualify
The plan’s FAQ says “Amounts transferred from another 529 college savings plan are not eligible”. A rollover is not a new contribution.
Nonqualified withdrawals
The instructions add a withdrawal back to income “if the withdrawal was not a qualified withdrawal as provided in the” Internal Revenue Code, after excluding returns of contributions for which no deduction was claimed.
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
- Counting a rollover from another 529 plan as a new contribution.
Related: how Michigan taxes retirement income, whether Michigan taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- 2025 Michigan Schedule 1 Instructions (MI-1040): https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/Schedule-1-Instr.pdf
- MESP 529 Plan FAQs: https://www.misaves.com/resources/faq/
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.