Ahh, more information is great. Thank you. NY does tax NY income with exceptions. Begin the trail here, Information for retired persons. This shows NY has a pension exclusion up to $20k and a special section for Nonresidents.
Which state you must file NY if you have New York source income greater than the New York standard deduction.
For the NY source income, we see that some pensions are exempt New York State taxation by reason of U.S. Code, Title 4, section 114. Finally on page 22 of the source income, we find:
New York State amount column Certain pension income received while a nonresident is not taxable to New York State and should not be included in the New York State amount column.
• U.S. Code, Title 4, section 114, prohibits states from taxing nonresidents on income they receive from (a) pension plans recognized as qualified under the IRC and (b) certain deferred compensation plans that are nonqualified retirement plans but which meet additional requirements.
• A pension or other retirement benefit that is not exempt under Title 4 of the U.S. Code, is exempt if it meets the New York definition of an annuity.
You stated that yours was tied to your performance which does not sound like it qualifies under section 114 - predominantly defined benefit plans. Please read through and see what else you know that we don't know. There are more exceptions and you may fit into one of them.
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