Retirement tax questions

 New York Pension and Annuity Income Exclusion

For New York state tax purposes, individuals may exclude a portion of their qualified pension and annuity income from their federal adjusted gross income when calculating their New York adjusted gross income.

Maximum Exclusion: The maximum exclusion is $20,000 per eligible taxpayer.

Eligibility for Full Exclusion:

• If you were age 59½ or older for the entire tax year, you may exclude up to the maximum $20,000.

Eligibility for Partial Exclusion:

• If you reached age 59½ during the tax year, the exclusion applies only to the pension and annuity income received on or after the date you turned 59½, up to the $20,000 maximum.

Rules for Married Taxpayers:

• Separate $20,000 Exclusion: If both spouses receive pension income, each spouse is entitled to a maximum exclusion of $20,000, regardless of whether they file jointly or separately.
• Non-Transferable Exclusion: You may not claim any unused portion of your spouse’s $20,000 exclusion.

Rules for Surviving Spouses:

• If you receive your own pension income in addition to your deceased spouse’s pension income, your maximum exclusion remains $20,000 annually.

Applicability to Estates and Trusts:

• The exclusion also applies to qualified pension and annuity income received by an estate or trust.

@lcampson