NY529
How New York's 529 tax deduction works, what it saves at your rate, when New York recaptures it, and a calculator.
NY529 tax deduction calculator
NY529 tax deduction
New York's 529 College Savings Program lets account owners deduct up to $5,000 a year of contributions from New York taxable income, or $10,000 for married couples filing jointly. The saving depends on your New York State rate (4% to 10.9%); a 5.5% rate on $5,000 saves $275.
Recapture: what New York doesn't treat as qualified
New York may recapture past deductions if you roll the account to another state's 529, take a nonqualified withdrawal, or use the money for elementary or secondary (K-12) tuition, even though federal law allows K-12 withdrawals. Check the plan's disclosure booklet before using the money for anything other than college. Plan growth with the 529 calculator.
Common questions
How much can I deduct for NY529?
Up to $5,000 a year, or $10,000 married filing jointly.
Can I use NY529 for K-12 tuition?
Federally yes, but New York may recapture the state deduction.
Sources
More savings and interest calculators: Maryland529 · Michigan Education Savings Program · Ohio529 · PA529
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.