Need help from NY Tax Pro

[Kram BergGold]

My client is a married full year NY resident. They make 500k. Their oldest child just went to college in 2006. College was paid for by some 529 money and checks from Dad. For IRS I was going to not claim kid as a dependent so the kid could get a $700 tax credit on his return. Now I see the NY college tuition deduction (this saves $800) , Form IT-272. Not the 529 deduction which I already took. Am I right that if I elect not to claim the kid as a dependent on Dad's return he loses the IT-272 itemized deduction. I also assume the kid can't claim it because he is eligible to be claimed by parents.

[GIMoe]

Dependant

For IRS I was going to not claim kid as a dependent so the kid could get a $700 tax credit on his return.

If the dad is eligible to claim the child, the child cannot claim themselves regardless of whether the dad actually claims them or not. See Pub 501, page 9:

You can take one exemption for yourself unless you can be claimed as a dependant by another taxpayer. If another taxpayer is entitled to claim you as a dependant, you cannot take an exemption for yourself even if the other taxpayer does not claim actually claim you as a dependant.