Total New York 529 Contributions

[LWes]

I do not recall seeing this question last year but TurboTax is asking me to enter the total of all contributions (from 1998-2005) to NY 529 accounts.  Do I really have to go back 17 years for my oldest childs account and add up all contributions?  What is the purpose of this, and does it actually factor into taxes owed?

[MindyB]

It depends. TurboTax asks for your total New York 529 contributions to calculate the basis of your account, which determines how much of a withdrawal is subject to tax recapture if the money is used for non-qualified expenses. New York allows a state tax deduction on contributions, so if you take a non-qualified withdrawal, the state seeks to tax the portion that previously received a deduction. 

If you did not take any money out of the account this year, or if all your withdrawals were used exclusively for qualified higher education expenses like tuition and room and board, this historical data will not change your tax liability. You can check for your historical contributions on your nysaves.org portal, but if you had no withdrawals, the entry is not required to complete your return accurately. 

[LWes]

Very detailed and helpful response, thank you!! 😊