Line 22: New York’s 529 college savings program distributions

Did you make a withdrawal (other than a withdrawal to pay the higher education expenses of the designated beneficiary) during 2023 from an account established under New York’s 529 college savings program?

If No , go to line 23.

If Yes , the withdrawal is a nonqualified withdrawal and you must complete the worksheet below.

A withdrawal is nonqualified if any of the following apply:

The withdrawal is actually disbursed in cash or in-kind from the college savings program and the funds are not used for the higher education of the designated beneficiary (even if the amount withdrawn is reinvested in New York’s college savings program within the IRC 60-day rollover period). For purposes of the above, higher education generally means public or private, non-profit or proprietary post-secondary educational institutions, in or outside New York State. Therefore, any withdrawal from a New York 529 college savings program used to pay tuition in connection with enrollment or attendance at elementary or secondary public, private, or religious schools, is a nonqualified withdrawal.

The funds are transferred on or after January 1, 2003, from New York’s 529 college savings program to another state’s program (whether for the same beneficiary or for the benefit of another family member). However, nonqualified withdrawals do not include any withdrawals made in 2023 as a result of the death or disability of the designated beneficiary, regardless of how the funds are used. If you have participated in a New York 529 college savings program, a rollover of some or all its assets, either contributions or earnings, to a qualified Achieving a Better Life Experience (ABLE) program is not considered a nonqualified withdrawal and requires no addition to your federal adjusted gross income in computing New York adjusted gross income.

The withdrawal is used to pay the principal or interest on any qualified education loan [as defined in IRC section 221(d)] of the designated beneficiary or a sibling of the designated beneficiary.

Note: Transfers between accounts of family members that are not disbursed in cash or in-kind within New York’s program are not considered distributions and therefore not required to be added back as nonqualified withdrawals.

Note: Before you complete this worksheet, you must first compute your Form IT-201, line 30 , subtraction for New York’s 529 college savings program for 2023.

Line 22 worksheet 1. Total current and prior years’ nonqualified withdrawals from your account(s) 1. _________ 2. Total current and prior years’ contributions to your account(s) 2. _________ 3. Total current year’s subtraction modification (from line 1 of worksheet for line 30) and prior years’ subtraction modifications * 3. _________ 4. Subtract line 3 from line 2 4. _________ 5. Total prior years’ addition modifications* 5. _________ 6. Add lines 4 and 5 6. _________ 7. Subtract line 6 from line 1. This is your current year addition. Enter this amount on Form IT-201, line 22 7. _________ If line 7 is 0 (zero) or less, there is no entry required on Form IT-201, line 22. *Be sure to include all prior years’ addition and subtraction modifications.

Keep this worksheet with your copy of your tax return.