ALBANY -- Families will now be able to direct a part of their state tax refund into New York’s 529 College Savings Program to further save for their child's academic future.
Gov. Andrew Cuomo signed the bill into law on Monday night that allowing families to split their state personal income tax refund and have the option of placing all or a portion of the refund into the college savings program at tax time.
In the 529 account, savings can grow tax-free as long as the money will be used to cover higher education expenses such as room and board, books and other supplies.
“Every parent of a college-bound student in New York State should take advantage of our 529 college savings plan,” Comptroller Thomas P. DiNapoli said in a news release from Assemblyman David Buchwald, D-White Plains, who sponsored the bill.
The law is expected to benefit all families, especially those of low and moderate-income levels, supporters said.
Also under the new law, a minimum of $25 must be contributed to start a 529 program.
The deposit cannot be changed or revoked once the taxpayer agrees to contribute the amount and can only be applied for the tax year that the refund was issued.
The bill was sponsored in the Senate by Thomas Croci, R- Suffolk County.
The measure was one of 133 bills Cuomo either signed or vetoed Monday.
For more information about New York's 529, visit: https://www.nysaves.org.