What line on the NY form is the 529 income showing up on? I found the NY instructions and it kinda confirms what I remembered (subject to interpretation).
If the income is showing up on line 22, I think you change your answer to no ( asking if he had any 529 withdrawals not covered by expenses).
If it's showing up on line 30, I think it's actually a deduction.
Look at the Instructions for lines 22 and 30 at
https://www.tax.ny.gov/forms/html-instructions/2022/it/it201i-2022.htm
