529's and tax deductions in New York

Parent Cafe
1

<p>This was discussed a few weeks ago but I can’t find the original thread…
We sat down with our CPA on Tuesday and found out that you can open a 529 college savings account and withdraw from it 10 days later and receive a $5000 NY (10K if filing jointly) income tax deduction. To explain:</p>

<p>I am a NY state resident, I have to pay my son’s first semester tuition and fees by July 12. All of that money is currently in US savings bonds not a 529 plan. If I cash out the bonds and deposit that money into a 529 money market account at least 10 business days before I need to pay my son’s tuition and fees I will receive the $5000 state tax deduction. and I will get that tax deduction for every year my kid is in college up to a certain monetary limit.</p>

<p>The website for information is <a href=“http://www.nysaves.org%5B/url%5D”>www.nysaves.org</a>. If you call the information number : 1-877-NYSAVES (1-877-697-2837)
They will tell you the same thing my CPA told me. But you should still talk to you tax advisor to make sure this will work for you.
I don’t know if any other states offer this deduction</p>

<p>goodluck!
Bill</p>

2

<p>(light bulb!!!) I live in New Jersey and have the NJ state 529 plan (no NJ tax benefit), but I work in New York and pay NY state taxes. But I think if I get a NY tax deduction it will just increase my NJ taxes. Research needed! I will consult my tax advisor.</p>

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<p>Go to this website:</p>

<p><a href=“Research and Compare 529 Plans - Shop, Compare and Enroll in Section 529 Plans”>Research and Compare 529 Plans - Shop, Compare and Enroll in Section 529 Plans;

<p>and down under comparing states, choose a question to be answered.</p>