When I apply my mother for the STAR program I just bring her taxes, they do the adjustments from the Federal Return.
| In accordance with S 612(C)(3)(i) of the tax law when a tax exempt governmental pension is rolled over in a tax-free transaction into an IRA, any distributions |
| from the rollover IRA will be tax exempt to the extent that they are attributable to the tax exempts amount rolled over into the IRA. |
|
During the Fed interview the only change would be QCD distribution to Fed taxes.
Also if there is any portion of the IRA that was sourced from a government pension plan, there are interview questions during the Federal interview that you must respond to. Then during NYS interview, you must calculate the portion of the cost basis on the IRA distribution that is government pension so it does not tax you in NYS. Do note that NYS did audit this for multiple years and you must prove the cost basis vs. the income utilizing a consistent process.
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