You can deduct the full $8K on your New York return as long as that $8K is taxable on your federal return. You can verify the amounts were taxable on your federal return by looking at your Form 1040. If the $8k is on line 4b (or 5b or 6b), it is taxable on federal return, and you can subtract that amount from NY.
Your and the other beneficiary's combined subtractions can't be more than 20K.
How to Preview Form 1040 in TurboTax Online.
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