State tax filing

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Your tax return properly includes the 529 deduction in determining your overall taxable income. However, for nonresidents, the 529 contribution isn't allocated to NY to determine your NY source income (see screenshot below from IT-225 instructions). This is the way that this deduction has worked for at least the past few years.

So, you do get a tax benefit in NY for contributing to a 529 plan but it's very small since you're not able to allocate that deduction to reduce your NY source income. The good news is that the increase in tax on NY is offset by a decrease in tax in CT, so you're still netting out to the same overall state tax in either scenario.