Private School Tax Break 529 savings accounts

[shwarmabob]

I still don't get it. Can we use the 529 accounts in NY for K-12 as of now or not?

[skyguy918]

I still don't get it. Can we use the 529 accounts in NY for K-12 as of now or not?

I'd imagine the states will eventually put statements to at least clarify their ultimate positions on this issue. All I was pointing out is that while it has been suggested that the states have to add K-12 to their tax codes to make it work from a state perspective, this quote implies the opposite - it's included until they specifically legislate it out.

[CPA]

On January 17, the New York State Department of Taxation and Finance issued a preliminary report on various aspects of the new federal tax law. Within that report, the Dept. of Tax & Finance states “it appears that distributions [of 529 funds] for K-12 tuition expenses would not be considered qualified distributions under...New York statutes.” Accordingly, any New York State tax benefits would be recaptured at the time a distribution is made from a NY 529 account to fund K-12 expenses (ie: the NY tax deduction and any earnings on contributions would be subject to NY tax).

[henche]

On January 17, the New York State Department of Taxation and Finance issued a preliminary report on various aspects of the new federal tax law. Within that report, the Dept. of Tax & Finance states “it appears that distributions [of 529 funds] for K-12 tuition expenses would not be considered qualified distributions under...New York statutes.” Accordingly, any New York State tax benefits would be recaptured at the time a distribution is made from a NY 529 account to fund K-12 expenses (ie: the NY tax deduction and any earnings on contributions would be subject to NY tax).

Booo

Sue them!!!!!!

[ExGingi]

On January 17, the New York State Department of Taxation and Finance issued a preliminary report on various aspects of the new federal tax law. Within that report, the Dept. of Tax & Finance states “it appears that distributions [of 529 funds] for K-12 tuition expenses would not be considered qualified distributions under...New York statutes.” Accordingly, any New York State tax benefits would be recaptured at the time a distribution is made from a NY 529 account to fund K-12 expenses (ie: the NY tax deduction and any earnings on contributions would be subject to NY tax).

Thank you for the informative post.

This was indeed feared. But in their defense, the DFS is only interpreting current law. Now we need to make sure Albany amends the law to make those distributions qualified.

[Shua]

On January 17, the New York State Department of Taxation and Finance issued a preliminary report on various aspects of the new federal tax law. Within that report, the Dept. of Tax & Finance states “it appears that distributions [of 529 funds] for K-12 tuition expenses would not be considered qualified distributions under...New York statutes.” Accordingly, any New York State tax benefits would be recaptured at the time a distribution is made from a NY 529 account to fund K-12 expenses (ie: the NY tax deduction and any earnings on contributions would be subject to NY tax).

Where did you see this? When I went on nysaves.org it just has the old information

[skyguy918]

Where did you see this? When I went on nysaves.org it just has the old information

https://www.tax.ny.gov/pdf/stats/stat_pit/pit/preliminary-report-tcja-2017.pdf
Search 529 within the doc.

[Shua]

https://www.tax.ny.gov/pdf/stats/stat_pit/pit/preliminary-report-tcja-2017.pdf
Search 529 within the doc.

Thanks

[yelped]

Is there any update on NYS tax exemption for k-12 use?

[shwarmabob]

Is there any update on NYS tax exemption for k-12 use?

K-12 distributions would not be considered qualified distributions under New York statutes