CarolWO
Returning Member

Retirement tax questions

I believe you are correct, NY state and local pensions are not NY taxable at any level.  The $20,000 limit is for non-governmental retirement income, which is the problem that I am running into.  My husband and I each took $20,000 out of our retirement accounts after we turned 59 1/2, and the program is pro-rating it, treating it like we collected it monthly throughout all of last year.  This means that 2 months of my husband's and 9 months of my distribution would not qualify for the $20,000, so our NY taxable income is showing more that $18,000 more than it should be.  Does anyone know how to correct that?