It depends. See the following information about 529 Plans for nonresidents working in New York (NY).Out of State Savers -- Qualify for a New York State tax deduction: If you work in New York and pay New York State income taxes, you may be entitled to a state tax deduction of up to $5,000 ($10,000 if you're married filing jointly) on contributions to your Direct Plan account.**New York State tax deductions may be subject to recapture in certain additional circumstances such as rollovers to another state's 529 plan, withdrawals used to pay elementary or secondary school tuition, rollovers to a beneficiary's Roth IRA account, or qualified education loan repayments as described in the Disclosure Booklet and Tuition Savings Agreement. State tax benefits for non-resident New York taxpayers may vary. Tax and other benefits are contingent on meeting other requirements. (From the link above)Direct Plan Tax Benefits - Review for your situation.If you do decide you should amend, then use the instructions below. An amendment for the state begins with the federal return even if you are not amending the federal.How do I amend my federal tax return for this year?

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simpsonjp

Question

I live in CT, but work and earn 100% of income in NY. I have deducted NY 529 contributions from NY previously, but now told I cannot as I am a non NY resident?

Forum|Forum|11 months ago
April 7, 2025
1 reply
0 views

No text available

DianeW777

It depends. See the following information about 529 Plans for nonresidents working in New York (NY).

Out of State Savers -- Qualify for a New York State tax deduction: If you work in New York and pay New York State income taxes, you may be entitled to a state tax deduction of up to $5,000 ($10,000 if you're married filing jointly) on contributions to your Direct Plan account.*
- *New York State tax deductions may be subject to recapture in certain additional circumstances such as rollovers to another state's 529 plan, withdrawals used to pay elementary or secondary school tuition, rollovers to a beneficiary's Roth IRA account, or qualified education loan repayments as described in the Disclosure Booklet and Tuition Savings Agreement. State tax benefits for non-resident New York taxpayers may vary. Tax and other benefits are contingent on meeting other requirements. (From the link above)
- Direct Plan Tax Benefits - Review for your situation.

If you do decide you should amend, then use the instructions below. An amendment for the state begins with the federal return even if you are not amending the federal.

How do I amend my federal tax return for this year?

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simpsonjpAuthor

Thank you, I apreciate the reply. Unfortunately, it depends is tough to understand for two reasons:

1) TurboTax will not allow me to advance my NY return on the basis that any amount as a 529 deduct from a non-NY resident is unacceptable. So how is TurboTax making this determination? The decision appears binary, which seems to not depend on much beyond being a non-NY resident.

2) Understand it's not anyone's problem but mine, but I chose NYs plan given the tax deduction as a NY State tax payer. TurboTax has accepted this deduct for years under my same situation, but TurboTax changed only on this 2024 year's filing attempt.

KeshaH

If you'd like, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account and have your amended return open,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Click on Online in the top menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.