NY State 529 Plan limits

[elilevi84]

Hi All,

I made a NY state 529 Plan contribution in 2023 for both my daughters. Each 10K. Total 20K.

I am file "married filing jointly" so the limit is $10K for State tax deduction.

Question is-

Is the limit per filer, meaning, I can only deduct $10k total?

or

the limit is per kid, meaning I can deduct $20k?

Thanks!

[DawnC · Accepted solution]

Your max is $10K ($5k for each spouse) to a family tuition account.  It is not per child, but per family.   Contributions can be made to the New York 529 College Savings Program by the account owner to one or more tuition savings account(s) established under the New York program. If the contributions were not deductible or eligible for a credit for federal income tax purposes, contributions may be deducted from New York State income (up to a limit of $5,000).

A husband and wife, who are each account owners, may each deduct up to $5,000 of contributions to a family tuition account. However, one spouse may not claim any unused portion of the other spouse's deduction.  NY 529 deductions   This is how TurboTax reports your deduction on the NY return.  

[Nadia123]

Can you clarify "a husband and who are each account owners"? We are married filing jointly but the 529 plans are under my name. I don't believe there is an option to have a second account owner, only beneficiaries and successors. What meets the definition of us both being account owners? If my spouse is not an account owner, are we able to claim $10,000 for married filing jointly or only $5,000 since only one of us is an account owner?

[AmyC]

After thoroughly searching the 529 website, I feel confident that a married couple is allowed the full deduction even if only one owns the account. The link above was to NYC employees participating in the 529, which would be different.

Tax benefits | NY 529 Direct Plan states: If you're a New York State taxpayer and an account owner, you may be able to deduct up to $5,000 ($10,000 if you're married filing jointly) of your Direct Plan contributions when you file your state income taxes. 

Who can open a 529 plan account?

Just about anybody can open a 529 account—parents, grandparents, other relatives, friends—as long as he or she is a U.S. citizen or a resident alien. As an account owner, you'll pick investments, assign a beneficiary, and determine how the money is used. If you're a New York State taxpayer, you can also benefit from the state tax deduction.**

**Contributions of up to $10,000 are deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually. 

@Nadia123