Increases the contribution that a resident taxpayer may make to family tuition accounts for each beneficiary thereof during a taxable year.
TITLE OF BILL: An act to amend the tax law, in relation to increasing the authorized resident taxpayer contribution to family tuition accounts to $10,000 per taxable year for each beneficiary thereof
PURPOSE: Increases to $10,000 the contribution that a resident taxpayer may make to family tuition accounts for each child during a taxable year.
SUMMARY OF PROVISIONS: Contributions made by an account owner under the New York State college choice tuition savings program should not be deductible for federal income tax purposes. However, individual or the head of household shall not exceed twenty thousand dollars for the account(s) of each beneficiary.
JUSTIFICATION: This legislation encourages parents to save tax-free tuition money for each child planning to attend college. Affording children the opportunity to attend college without incurring debt upon graduation.
LEGISLATIVE HISTORY: 2010: S.7306 2007-2008: A.10222
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 602 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to increasing the authorized resident taxpayer contribution to family tuition accounts to $10,000 per taxable year for each beneficiary thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 32 of subsection (c) of section 612 of the tax law, as amended by chapter 81 of the laws of 2008, is amended to read as follows: (32) Contributions made during the taxable year by an account owner to one or more family tuition accounts established under the New York state college choice tuition savings program provided for under article four- teen-A of the education law, to the extent not deductible or eligible for credit for federal income tax purposes, provided, however, the exclusion provided for in this paragraph; FOR AN INDIVIDUAL OR HEAD OF HOUSEHOLD, shall not exceed
[five]TEN thousand dollars [for an individ- ual or head of household]FOR THE ACCOUNT OR ACCOUNTS OF EACH DESIGNATED BENEFICIARY, AS DEFINED IN SECTION SIX HUNDRED NINETY-FIVE-B OF THE EDUCATION LAW, and for married couples who file joint tax returns, shall not exceed [ten]TWENTY thousand dollars FOR THE ACCOUNT OR ACCOUNTS OF EACH DESIGNATED BENEFICIARY, AS DEFINED IN SECTION SIX HUNDRED NINETY-FIVE-B OF THE EDUCATION LAW; provided, further, that such exclu- sion shall be available only to the account owner and not to any other person. S 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03297-01-1