I have an Inherited IRA, my wife has a regular IRA distribution, both around $7000. Applies the pension exclusion to my wife'e IRA distribution but not to my Inherited IRA distribution. I can fix it with override, but don't understand why I should need to do so. I also have a pension that is excluded from NY State because it is a government pension, but that does not use up the $20,000 pension exclusion. Thank you
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New York permits a beneficiary to claim the same pension exclusion if the deceased owner would be eligible to claim the exclusion had he or she lived. Thus, the controlling issue is the age of the owner, and not the beneficiary. See, for example, New York State Department of Taxation and Finance Publication 36, “General Information for Senior Citizens and Retired Persons,” March 2015, pp. 14-16.
Also see Inherited IRAs and State Income Tax here:
https://sfmagazine.com/post-entry/july-2016-inherited-iras-and-state-income-tax/
New York permits a beneficiary to claim the same pension exclusion if the deceased owner would be eligible to claim the exclusion had he or she lived. Thus, the controlling issue is the age of the owner, and not the beneficiary. See, for example, New York State Department of Taxation and Finance Publication 36, “General Information for Senior Citizens and Retired Persons,” March 2015, pp. 14-16.
Also see Inherited IRAs and State Income Tax here:
https://sfmagazine.com/post-entry/july-2016-inherited-iras-and-state-income-tax/
I treated my early out CSRS pension as a qualified government pension and have had no trouble with IRS or New York State. I suspect that FERS pension would be the same.
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