non qualified plan deferred comp on W2 box 11

[mtang]

on form NYS IT 203 non-qualified comp is shown and reported on line 16 in federal column and accounted for computing tax for NYS. Question is should this be also shown in NYS column line 16? If so then NYS is taxing non-qualified comp along with federal and getting taxed twice. Is that correct? 

After little bit of research, I found out its not taxable in NYS because it is considered federal income and derived from state sources and it will not be subject to NYS income tax, therefore should not be included in calculation of NYS tax percentage. 

Please advise if I am doing correct by not including in NYS column line 16 on IT 203 

Thank you for your help and advice. 

[DaveF1006]

To clarify, were you a non-resident of NYS for all of 2023? How did this distribution get reported? Was it on a W2 or some or another form? 

[Edited 03/28/24|1:38 pm PST]

@mtang 

[mtang]

Non resident of NYS for full 2023 year . non-qualified comp is reported on W2 box 11 and included in Box 1 as total wages also. 

[RobertB4444]

As long as your non-qualified plan is paid by either New York State or a local government then it is not taxable to New York and you are correct not to include it on the New York side of line 16.

@mtang 

[mtang]

that's great. thanks a lot! 

also how do I know if it's paid by NYS or local govt since i got it from my employer? where can i check and verify it - plz let me know. thanks again! 

[DaveF1006]

Go back to your state return and go through each of the allocation screens when they appear. if this particular income needs to be allocated, leave the NYS blank. You should not be taxed for a non-qualified distribution if you are not a resident of NYS.

What RobertB4444 is referring to is if this was a distribution from a non-qualified pension plan but this isn't the case here.

[mtang]

No, this isn't the distribution from the non-qualified pension plan but distribution from my non-qualified plan after I lost my job at a senior level in NYC. I am NJ resident. 

I will go back to NYS return and leave the allocation screen blank or enter zero where it is needed. 

Thanks for your help and advice in clarifying the doubt i had. Thanks again.!