When taxpayer is both contributor and beneficiary of NYS 529

Forum|Forum|2 years ago
February 12, 2024
1 reply
0 views

Contributions to NYS 529s are income tax deductible. Why isn't turbo tax making a deduction for my 2023 NYS529 when I am both the contributor and beneficiary of funds within the same tax year?

SusanY1

Can you clarify if you mean that there is both a contribution and a distribution in the same year? Or do you just mean the contribution is for an account on which you are also the beneficiary?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

TaxLady1975Author

Both. The contributor was the beneficiary in the same tax year. This appears to be income tax deductible and not counted as income in NYS, but I don't see the calculation being tabulated in Turbo. Is it only income tax deductible if one is itemizing or is there a software issue or is the information I'm receiving from the state incorrect? Thank you in advance for your help.

AmyC

Employee

The program has you enter contributions and then nonqualified withdrawals. If all withdrawals were qualified, the amount should be zero for nonqualified withdrawals.

Here is the 2024 update to NY 529 plan

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"