Mar 13, 2008 10:53 AM
The following information pertains to our retirees who are residents of New York State. All others should check their own state taxing authorities for the rules regarding these deductions.
The following is provided for your convenience and is based on available information. You should consult the New York State Tax Department or a tax adviser if you have specific legal questions. In all cases, rules and regulations prevail.
Members may be entitled to receive several types of New York State and local income tax relief on their retirement income.
Pensions of New York State and local governments: Your TRS retirement allowance and any TDA monthly annuity payments are not subject to New York State or City income tax. This is also true of any other New York State or municipal pension. However, they are reportable on line 10 of your NYS form IT-201 and are subtracted on line 26 of this form.
Social Security benefits: You are not required to pay New York State or local taxes on Social Security benefits. However, the federally taxable amounts of your Social Security benefits should be entered on line 14 and subtracted on line 27 of your New York State Tax form IT-201.
Other pension and annuity income: You may exclude the first $20,000 of other retirement income such as IRA distributions, TDA withdrawals, MRD payments and pensions from private employment, for example. This exclusion is available only on retirement payments that you receive after you reach 591/2.
You should report the entire taxable amount of such distributions as shown on your federal return on form IT-201. IRA distributions are reported on line 9 of this form and all other taxable pension and annuity distributions are reported on line 10. The combined total of IT-201 lines 9 and 10 is subject to the $20,000 maximum exclusion and is subtracted on line 29. Joint return filers are each eligible for the $20,000 exclusion of your own retirement income.
Any refunds of IRA or TDA contributions made after the date of your retirement do not qualify for this exclusion and should be reported only on lines 9 and 10 with no exclusion.
Pensions from federal employment: If you receive a pension from the federal government, you add the taxable portion of this amount to the taxable amount of your TRS pension and report the total on line 10 of form IT-201. You then subtract on line 26 of this form.