topic When taxpayer is both contributor and beneficiary of NYS 529 in Education

When taxpayer is both contributor and beneficiary of NYS 529

TaxLady1975 — Wed, 11 Feb 2026 03:45:32 GMT

Contributions to NYS 529s are income tax deductible. Why isn't turbo tax making a deduction for my 2023 NYS529 when I am both the contributor and beneficiary of funds within the same tax year?

Re: When taxpayer is both contributor and beneficiary of NYS 529

SusanY1 — Sat, 17 Feb 2024 02:25:27 GMT

Can you clarify if you mean that there is both a contribution and a distribution in the same year? Or do you just mean the contribution is for an account on which you are also the beneficiary?

Re: When taxpayer is both contributor and beneficiary of NYS 529

TaxLady1975 — Sat, 17 Feb 2024 11:07:54 GMT

Both. The contributor was the beneficiary in the same tax year. This appears to be income tax deductible and not counted as income in NYS, but I don't see the calculation being tabulated in Turbo. Is it only income tax deductible if one is itemizing or is there a software issue or is the information I'm receiving from the state incorrect? Thank you in advance for your help.

Re: When taxpayer is both contributor and beneficiary of NYS 529

AmyC — Sat, 17 Feb 2024 18:30:02 GMT

The program has you enter contributions and then nonqualified withdrawals. If all withdrawals were qualified, the amount should be zero for nonqualified withdrawals.

Here is the 2024 update to NY 529 plan

Re: When taxpayer is both contributor and beneficiary of NYS 529

TaxLady1975 — Sat, 17 Feb 2024 20:56:12 GMT

Respectfully, this doesn't answer the question. I'm asking for clarification on why the software does not make the NYS income deduction once it is entered indicating that there were no unqualified withdrawls. After entering both the contribution and beneficiary allocation, the amount should be reflected as an income tax deduction on the NYS portion, however this is not happening once the figures are entered. Can you please clarify? Thank you.

Re: When taxpayer is both contributor and beneficiary of NYS 529

AmyC — Sat, 17 Feb 2024 23:21:47 GMT

I think you are saying that your line 30 is not showing the NY subtraction for the 529 contribution. You must be the owner of the account. If you qualify and have things properly marked, you should be getting the credit.

Reference: subtractions instructions

Maybe you have a bit of data stuck. Please go through the directions below. Let us know if you still don't have your credit.

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