topic 529 Eligibility in State tax filing

What's the difference between "New York 529 College Savings Contributions" to "Federal" vs "New York source portion" mean in my "Enter New York 529 Contribution" page?

kaitlyntian — Mon, 23 Feb 2026 13:23:54 GMT

I feel like I'm just contributing to my 529 plan not sure if it goes to Federal or New York source Portion

Re: What's the difference between "New York 529 College Savings Contributions" to "Federal" vs "N...

SantinoD — Sat, 04 Feb 2023 21:19:00 GMT

Contributing to a Qualified 529 plan is not deductible on the Federal side, but it can be deductible on the State side, depending on the State.

When you are filling out your State Tax Return, if your state allows a contribution deduction, it will ask the question if you contributed to a 529 plan. TurboTax will ensure you get the proper deduction if you qualify.

Re: What's the difference between "New York 529 College Savings Contributions" to "Federal" vs "N...

kaitlyntian — Mon, 06 Feb 2023 00:11:18 GMT

Thank you for replying. I’m afraid I’ve miscommunicated my message. Please see the screenshot attached, I was prompted to ask if I contributed my New York 529 saving in “Federal” or “New York Source Portion” which hestitated me because I understood, as you explained, federal doesn’t take part in the insensitive for 529 plan. I contribute my 529 through BlackRock so I don’t know if which box should I select.

Re: What's the difference between "New York 529 College Savings Contributions" to "Federal" vs "N...

KrisD15 — Mon, 06 Feb 2023 01:14:23 GMT

There is a New York State "College Tuition Credit" and that is what the Federal input box looks like it's asking for.

If you only contributed to a 529 savings account (and have no education expenses) ignore the Federal box.

New York Claim for College Tuition Credit or Itemized Deduction

529 Eligibility

Bill B5 — Sat, 25 Feb 2023 20:35:28 GMT

Can a grandparent or a friend contribute to a 529 account and claim it as a deduction? The plan is not directly related to the donor. For example, the 529 is my grandchild's plan.

Re: 529 Eligibility

KrisD15 — Sun, 26 Feb 2023 01:16:43 GMT

Yes, some states give credit for contributions made to a 529 Plan and the Beneficiary of the plan does not need to be related.

There is a yearly limit for each beneficiary, and also a limit on the total balance a future student can hold, so check with a plan administrator first.

See IRS Pub 970 Chapter 6 for more information