529 Plans
New York 529 Plan Rules
New York's plan is New York's 529 College Savings Program. New York allows a deduction of up to $5,000 a year, or $10,000 for a married couple filing jointly. New York treats K-12 tuition withdrawals as nonqualified: the earnings are taxed by the state and earlier deductions are recaptured. For the newer K-12 expenses, including tutoring, the state tax department says it has not yet determined the treatment.
- Plan
- New York's 529 College Savings Program
- State tax break
- New York allows a deduction of up to $5,000 a year, or $10,000 for a married couple filing jointly.
- K-12 withdrawals
- Taxed by the state
- Detail
- New York treats K-12 tuition withdrawals as nonqualified: the earnings are taxed by the state and earlier deductions are recaptured. For the newer K-12 expenses, including tutoring, the state tax department says it has not yet determined the treatment.
- Maximum balance
- $520,000 maximum account balance
- Federal K-12 limit
- $20,000 a year per student
For the federal conditions on tutoring and the full list of K-12 expenses, see Can you use a 529 plan for tutoring?
Frequently asked questions
Does New York give a tax deduction for 529 contributions?
New York allows a deduction of up to $5,000 a year, or $10,000 for a married couple filing jointly.
Can I use a New York 529 plan for tutoring?
Federal law allows it, but this state taxes K-12 withdrawals. New York treats K-12 tuition withdrawals as nonqualified: the earnings are taxed by the state and earlier deductions are recaptured. For the newer K-12 expenses, including tutoring, the state tax department says it has not yet determined the treatment. Under the federal rule, the tutor cannot be related to the student and must be a licensed teacher, have taught at an eligible educational institution, or be a subject matter expert.
Can I use a New York 529 plan for private school or other K-12 costs?
Federal law allows up to $20,000 a year per student for K-12 tuition and the other listed expenses. New York treats K-12 tuition withdrawals as nonqualified: the earnings are taxed by the state and earlier deductions are recaptured. For the newer K-12 expenses, including tutoring, the state tax department says it has not yet determined the treatment.
What is the maximum balance in a New York 529 plan?
$520,000 maximum account balance.
State rules: New York's 529 College Savings Program official documents. Federal rules: IRS Tax Topic 313 and Public Law 119-21. Read October 6, 2026. This page is general information, not tax advice.
