<prompt> Human: Question: Are contributions to a 529 considered tax free? Lets say I receive 10k then deposit it directly to a 529, do I need to claim this or pay taxes on it? Im a bit confused. Assistant: You put money into a 529 with after tax money, but in some cases it can be deductible for state taxes so it would become before tax money for state purposes. They are not deductible for federal tax purposes, but the money grows tax deferred and if its used for education then it the growth can be withdrawn federal-tax free.Human: So if I deposited that amount but was never given a 1099 for it, who pays the taxes, me or my beneficiary? What if it was a gift for my beneficiary and I simply deposited it? Assistant: You wouldnt receive a 1099 for contributions. Human: Not from the 529 but from the person I did work for. Or do you mean by for contributions a gift that was given for the beneficiary?  <response>: Putting a gift into a 529 has nothing to do with it being before it after tax money. If the gift is under 14k per person its the same as putting the gift into a savings account except might be able to deduct state taxes. 