What exactly are the tax benefits for investing in the New York State 529 plan?
I quote from their website: “New York’s 529 College Savings Program Direct Plan offers numerous tax incentives that make it a very attractive way to save money for college for a child, grandchild, friend, or other relative. A full discussion of the federal and New York State tax treatment of contributions and withdrawals is included in the Program Brochure and Tuition Savings Agreement. Federal income tax benefits. Your assets grow tax-deferred, and withdrawals are exempt from federal income tax, as long as they’re used for qualified higher education expenses.* State income tax benefits. You’ll get a New York State income tax deduction of up to $5,000 ($10,000 for married couples filing jointly) for contributions if you are a New York State taxpayer. If you are a resident or taxpayer of another state, you should consider whether that state offers a 529 plan with tax advantages or other benefits that are not available through this Program. (Note that deductions are subject to recapture
