You should enter no more than 5K (10K if MFJ) for New York 529 Contributions in 2024. You can contribute as much as you want to a 529 plan, but can only deduct the 5K/10K on your New York tax return. You can't claim a deduction in a future year for contributions made in a prior year.
If you contribute more than the annual gift tax exclusion to a New York 529 plan, you may need to file IRS Form 709. You can also use the 5-year gift tax averaging strategy to make larger contributions without affecting your lifetime gift tax exclusion.
- The IRS considers 529 plan contributions as gifts for federal tax purposes.
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In 2025, the annual gift tax exclusion is $19,000 per donor per beneficiary.
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Married couples filing jointly can each contribute up to $19,000.
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You can use the 5-year gift tax averaging strategy to treat a single large contribution as if it were made over five years.
- For example, you could treat a $95,000 contribution as if it were $19,000 per year for five years.
Here's more info from New York 529 Advisor.
[Edited 2/17/2025 | 3:51 pm]
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