He isn't required to file this year as his earned income is below the threshold. We claim him as a dependent on our MFJ tax return. To clarify, the NY 529 Disclosure Booklet, https://cdn.unite529.com/jcdn/files/NYD/pdfs/DisclosureBooklet.pdf (your link just goes to a general 529 Saving for College site), states "while the earnings portion of a Refunded Distribution would not be subject to federal income tax or the Federal Penalty, it is subject to New York State tax. See Section 7. Important Tax Information—New York State Tax Information". Given that, would my son claim the earnings portion of the refunded distribution (even though we will re-contribute it within 60 days of refund) as income on his 2021 TTax NYS return?
