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Joe-G
New Member

I moved from NY to MO. Both give deductions for 529, and MO gives deductions for contributions to any plan. Can I contribute to NY and get a deduction in both states?

i will be filing income taxes for both NY and MO as i moved mid-year and will have income from both. can i double up the deduction for 529 contributions?
4 Replies
KochuK
Employee Tax Expert

I moved from NY to MO. Both give deductions for 529, and MO gives deductions for contributions to any plan. Can I contribute to NY and get a deduction in both states?

Hi Joe-G,

 

Below is from TurboTax On Demand Tax Guide:

Savings for Tuition Program (MOST/529 Plan) and/or Education Deposit Program

You may enter into a Savings for Tuition Program (MOST/529 Plan) and/or Education Deposit Program agreement on behalf of someone who intends to go to a qualified educational institution. The state of Missouri allows a subtraction from federal adjusted gross income for the amount of annual contributions made to the Savings for Tuition Program (MOST) and/or Education Deposit Program. The maximum annual exempt contribution per taxpayer is $8,000. The MOST subtraction cannot result in a negative Missouri adjusted gross income for either taxpayer.

When the student enrolls in a school, funds from the program can be withdrawn to pay for tuition, books, living and other qualified educational expenses to attend any Education institution eligible under Internal Revenue Service rules. In general, eligible educational institutions are accredited educational institutions.

Should your prospective student decide not to attend a school or not need to use all of the funds in his or her account for educational purposes, the funds can be rolled over into another child's name. Any funds not used for educational purposes are subject to normal state and federal income taxation as well as a 10% IRS penalty.

Note: You can only claim subtractions for contributions made through December 31st of the current tax year.

 

The "Missouri Higher Education Deposit Program" is also in state plan only.

https://revisor.mo.gov/main/OneSection.aspx?section=166.505

an old reference -

https://house.mo.gov/billtracking/bills03/bills/SB018.htm

Therefore, I believe that you can not deduct a NY 529 contribution in your Missouri part year resident return.

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Hal_Al
Level 15

I moved from NY to MO. Both give deductions for 529, and MO gives deductions for contributions to any plan. Can I contribute to NY and get a deduction in both states?

Q. Can I double up the deduction for 529 contributions?

A. No. Double dipping is not allowed on taxes.  In the state software, you will be asked to allocate your deductions.  The 529 contribution is usually allocated to the state you were living in at the time the contribution was made, if eligible in that state.

mcmorgan723
Returning Member

I moved from NY to MO. Both give deductions for 529, and MO gives deductions for contributions to any plan. Can I contribute to NY and get a deduction in both states?

Received letter from IRS  5071C  I followed the directions to verify. I didn’t have one document that they would accept 

Hal_Al
Level 15

I moved from NY to MO. Both give deductions for 529, and MO gives deductions for contributions to any plan. Can I contribute to NY and get a deduction in both states?

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