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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.

--
Don EA in Upstate NY

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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

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >