Nonqualified distribution from NY 529 plan
In 2004 client contributed $24000 to a NY 529 plan and deducted $10000 from that year's NYS tax return.In 2007 client took an $11000 nonqualified distribution from the 529. On the 1040 I recorded the income on line 21 and computed a 10% penalty.My problem is the IT 201. I subtracted the income as per instructions. This doesn't seem correct.I'm not certain of the amount that s/b added back on line 22. I use Proseries. I used the worksheet and come out with a -3000 as an addition. This reduces the income. This is what is confusing me.Any help with the IT 201 is appreciated.Thanks in advance.
