Yes, leave box 6 blank, however you will need to enter the NY amount and State ID (not TIN) in the state boxes in your Form 1099-R. Also enter the distribution in box 16, if after reviewing the information it doesn't fit the criteria for tax free treatment. Depending on the type of distribution it may be considered taxable for NY. Every state has different rules about whether it will be taxable.
If it is NY source income then it will be taxable if it doesn't meet the criteria for a tax free benefit.
Information for retired persons - This reviews some of the tax free pensions in NY and then click the Nonresident link if this distribution does not qualify for tax free treatment in NY.
If you do have to pay tax on it in NY, your state of residence (CA) will give you a credit for taxes paid to another state on the same income. The credit that is allowed will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
Please add any questions here if you need further assistance.
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