Hi DanJ6669
Thanks for explaining how to get TT NYS to do the correct math. I was thinking I had to use the fudge factor line (I forget which line that is on the form).
I am surprised in this conclusion " New York allows you take back any contributions made without receiving a tax benefit as a non-qualified withdrawal without having to pay back a tax deduction. It is only after you have used up your non-deductible contributions that NY will reclaim the tax benefit that you received when making the contributions."
I was trying for at least a pro-rated amount (contributions made with receiving a tax benefit / total contributions). Just because you made the numbers come out to meet that conclusion, is the conclusion really the correct one? Have you ever found the actual rules anywhere?
As for "account is inherited", I have seen that NYS wants clawback on that as well. From the 1099Q you do know basis vs gains, but unless you know how much the grandparent deducted vs total contributions, how would you make the calculations?
I have something similar. I took a non-qualified withdrawal in my child's name (she received the 1099Q). If I were to use your method (in her tax return), the "Enter Total New York 529 Contributions" and "Enter your ... [tax-deductible] contributions from your 1998 through 2023 New York returns" portions would be 0 since they are on my returns not hers. Should I enter my numbers?
