I contributed $10,000 to my state’s 529 savings plan for my grandchild. The account today is worth only $3,000. Can I deduct a loss?

If the remaining balance of the account is withdrawn and your total investment in the account has not been recovered, you can take the loss. However, it is claimed only as a miscellaneous itemized deduction subject to the 2% of adjusted gross income floor on Schedule A of Form 1040.