Michigan Tax Deduction

[tjkohler]

Assume: Beneficiary = Child. Parent = Owner
Parent puts 10K in. When the money is taken out (same tax year), it's taken out by the child, not the parent, correct?
If that is the case, does the following not apply and the parent can tax deduction?:
"Michigan taxpayers may also be eligible for a Michigan income tax deduction on contributions made to MESP up to $10,000 for married couples filing jointly or $5,000 for individuals filing single per year. A Michigan taxpayer is permitted a deduction from Michigan adjusted gross income for a contribution to an account less any Qualified Withdrawals made during the tax year. Amounts transferred from another 529 college savings plan are not eligible for the Michigan income tax
deduction."

[dcandmc]

The money is always "taken out" by the account owner, not the beneficiary (unless the account owner is also the beneficiary, which is not the case in your assumption). The account owner specifies to whom the requested distribution goes: the beneficiary, an educational institution, or the account owner.

Under the quoted language you provide, if a Michigan taxpayer/MESP account owner who files as married filing jointly makes a $10,000 contribution to the MESP account and in the same tax year requests a $6,000 qualified MESP distribution to the beneficiary, the taxpayer/MESP account owner would be entitled to a $4,000 deduction from Michigan adjusted gross income for Michigan income tax purposes.