Would an NY 529 contribution reduce city income taxes?
Would an NY 529 contribution reduce city income taxes?
We live in NYC and all our earned income is from NYC. As a married-filing-jointly couple, up to 10K in contributions this calendar year would be deductible for our 2017 New York State income taxes. Would there be a corresponding reduction to our New York City income tax liability?
Re: Would an NY 529 contribution reduce city income taxes?
Googling around (as this is of interest to me as well), the total lack of any mention of NYC on any literature involving the NYS 529 leads me to believe the answer is 'no'.
-g
Edit: I'm (thankfully) incorrect according to the two posts below.
-g
Edit: I'm (thankfully) incorrect according to the two posts below.
Last edited by getco on Thu Nov 09, 2017 7:23 am, edited 1 time in total.
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Re: Would an NY 529 contribution reduce city income taxes?
The NYS Form IT-201 tax return form clearly results in NY 529 contributions reducing taxable income both for state income tax purposes as well as for local income taxes, for NYC or Yonkers income taxes.
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Re: Would an NY 529 contribution reduce city income taxes?
I am a CPA in New York and have been practicing for over 10 years.
I agree with ManhattanTrnsfr.
I agree with ManhattanTrnsfr.
- Buffetthead |
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"[Cash is] thought of as “safe.” In truth they are among the most dangerous of assets."
Re: Would an NY 529 contribution reduce city income taxes?
Solar99999 and ManhattanTrnsfr,
Thanks for responding. Particularly helpful as I'm starting an NY 529 this year for my son.
-g
Thanks for responding. Particularly helpful as I'm starting an NY 529 this year for my son.
-g
Re: Would an NY 529 contribution reduce city income taxes?
NYC resident right here. Yes you are able to deduct up to $5,000 for filling single or up to $10,000 for Filling joint.
Re: Would an NY 529 contribution reduce city income taxes?
Great, thanks for the responses.
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Re: Would an NY 529 contribution reduce city income taxes?
Just to be clear for a married couple it's a deduction up to $5,000 for each (for contributions to his or her own NY 529 account), or up to $10,000 together.