New York · 529 Plan Deduction
New York's 529 subtraction is real money — but only through New York's own program.
New York rewards 529 saving with a state subtraction — with a program restriction and a recapture rule worth knowing before you fund an out-of-state plan.
How much can I deduct for 529 contributions?
Up to $5,000 per year of contributions to New York's 529 program ($10,000 for married filing jointly) as a subtraction modification under §612(c)(32). The subtraction is per-return, applies whether or not you itemize, and excess contributions do not carry forward.
Do contributions to another state's 529 plan qualify?
Commonly misreportedNo — the subtraction is limited to contributions to New York's own program (the Direct Plan and Advisor-Guided Plan). Funding a Utah or Nevada plan gets no New York subtraction, no matter the amount.
Can New York claw the deduction back?
Yes — nonqualified withdrawals and rollovers out of the New York program trigger an ADDBACK of previously subtracted contributions (plus tax on earnings). K-12 tuition withdrawals, which are federally qualified, are treated as nonqualified by New York and can trigger recapture — a common surprise.
Get a citation-verified answer for YOUR facts
$0.50 · answer grounded in the actual New York statutes, regulations and cases cited above — every claim machine-verified before you see it
Related New York tax questions: Pensions & Social Security · Child & Family Credits · Standard Deduction
Tax intelligence, not tax advice. Every answer above cites primary law you can check; a qualified professional should review your specific situation before filing. TaxPulse — a PulseNetwork intelligence engine.