New York State Comptroller Thomas P. DiNapoli today reminded New Yorkers that contributions to a New York State 529 College Savings Program account are tax deductible. New York’s 529 College Savings Program, an investment tool designed to help parents save for college, ranks among the best in the nation, and New York is one of a handful of states that offer state tax relief.

Contributions made by December 31 can provide up to $10,000 in state tax deductions on 2014 tax filings. Parents have paid for more than $916 million in college-related expenses through the program since January.

“New York’s 529 College Savings Program can help you give the gift of higher education this holiday season,” said DiNapoli. “Our program consistently ranks among the best and offers tax deductions for parents and loved ones who want to get a head start on saving for college. It’s never too early or too late to lay a foundation for a child’s future. I urge New Yorkers to consider investing in a 529 College Savings account today.”

New York residents can deduct annual contributions made to their 529 College Savings Program accounts on 2014 income tax returns if they are made by December 31. New York State taxpayers who are already account owners can contribute and deduct up to $5,000 from their New York State taxable income, and married couples filing jointly can deduct up to $10,000 each year.

New York’s 529 College Savings Program began in 1997 and is overseen in partnership by DiNapoli’s office and the New York State Higher Education Services Corporation. Parents can use the program to save money to help cover qualified higher educational costs including tuition, certain room-and-board expenses, books and supplies. The program offers two plans that individuals can enroll in, the Direct Plan and the Advisor Plan.

The Direct Plan offers a broad array of investment options, including three age-based investment options that automatically rebalance the assets in the portfolio to become more conservative as the child approaches college age. There are more than 659,000 Direct Plan accounts valued at $16.6 billion. Since January, New York’s 529 Program has paid out more than $774 million for college-related expenses to New York Direct Plan account holders.

The Advisor Plan offers the option to select individual portfolios by assembling a customized portfolio using 16 individual investment options. There are over 168,000 Advisor Plan accounts valued at

$3.4 billion. Since January, New York’s 529 Program has paid out more than $142 million for college-related expenses to New York Advisor Plan account holders.

For a chart showing number of accounts, value of accounts and withdrawals for college-related expenses by county, visit:
http://osc.state.ny.us/college/529plan_values.htm

For more information about New York State’s 529 College Savings Program, visit:
http://www.osc.state.ny.us/college/index.htm