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New York State tuition itemized deduction

I paid $6000 in tuition for dependents in 2008. On the 1040 I claimed the above the line Tuition and Fees deduction (line 34) in the amount of $4000. So my federal adjusted gross income includes this deduction and I transfer this to my New York IT-201 form. I want to claim a NY itemized deduction for tuition but I am unsure as to whether I should use the total $6000 or just $2000. If I enter $6000 as a NY itemized deduction it seems as if I am getting double the credit for the $4000 from the federal deduction. thanks

Reply to
peg_heffron
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You DO NOT reduce your NY educational expenses by the amount of the Federal tuition adjustment to income. Yes, you would be double dipping, and yes, that is the correct way to do it. The instructions for Form IT-272 explicitly mention that you can take the NY credit or deduction after you take the Federal deduction which also reduces your NY AGI. You can also triple-dip, taking a NY subtraction for a contribution to a NY 529 plan, then withdrawing the money to pay tuition, taking the Federal adjustment or credit, and then take the NY deduction or credit. And as the NY outreach speaker pointed out at her seminar, there is no minimum time that assets must be held in a 529, so you can do it all in the same year.

Reply to
Don Priebe

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