Updated October 4, 2026. Quick answer: Yes, for a New York account. The 2025 IT-201 instructions let the account owner subtract contributions to a New York 529 account, up to $5,000, or “$10,000 for married taxpayers filing a joint return”.
What New York allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Subtraction on the state return |
| Limit | $5,000, or $10,000 for married taxpayers filing a joint return |
| Plans that qualify | Accounts under New York’s 529 college savings program |
| Not-qualified withdrawals | Added back on the Line 22 worksheet |
| Source | New York State Department of Taxation and Finance, 2025 IT-201 instructions |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a New York 529 account for one child can subtract the whole $10,000, because it fits under the $10,000 joint limit.
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Which withdrawals are added back
A withdrawal that is not qualified has to come back into income: “you must complete the Line 22 worksheet”. The instructions also treat a move out of the plan as one: “the transfer to another state’s program” is a nonqualified withdrawal.
What the documents do not say
- Whether excess contributions carry forward to a later year.
- Whether contributions to another state’s plan qualify. The instructions name accounts under New York’s own program.
What changes in 2026
No change for tax year 2026 appears in the 2025 instructions.
Federal rules
A state break sits beside the federal rules for 529 plans: the statute is 26 U.S.C. 529 and the IRS explains it in Publication 970, Tax Benefits for Education.
Common mistakes
- Assuming a contribution to another state’s 529 plan earns the New York subtraction; the instructions name only New York program accounts.
Related: how New York taxes retirement income, whether New York taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- 2025 Instructions for Form IT-201 (IT-201-I): https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.