Re: NYCERS pension is causing NYS tax to take both NYS exclusion and $20000 pension exclusion
It depends. New York State does give an exclusion up to a maximum of $20,000 depending on the income. It is correct to choose NYS and Local retirement system as the correct choice. I was intrigued by this scenario I tested it out in my own program to see if my results were the same as yours. This is what I found.
- Embedded in the New York State tax code reveals that the pension exclusion is 1/2 of the actual annuity amount until $40,000 then the exclusion is capped at $20,000
- I first plugged in $20,000 as the pension amount and my result was a pension exclusion of $10,000.
- I next plugged in $30,000 and the pension exclusion is $15,000.
- Next amount was $40,000 and received a $20,000 exclusion.
- For giggles, I plugged in $54,000 and received the $20,000 maximum.
If you have the opportunity to view your It-201, you will see the actual pension exclusion on line 29 and should reflect what I just mentioned. If different, you may wish to contact Live Turbo Tax Tech Support at 1-800-448-8848. Live support has the ability to look at your screen to pinpoint any issues you have and help you correct reporting mistakes if applicable.
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