Pension money from work, 1099-R for disability or retirement, is what kind of distribution from? Not eligible for exclusion for those over 59 1/2 or none of the above?

[lcampson]

Live in NY, worked in NY but not US Government or NY State or City Education.

[MaryK4]

You would want to select None of the above.  This would not qualify for the New York state full exclusion for government pensions. However, it may be eligible for the $20,000 NY state pension exclusion.

[lcampson]

Thank you, that's what I thought it would be, but how would I know if it's eligible for the $20,000 NY pension exclusion?

[CesarJ]

 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 

[lcampson]

Thank you. We are both well over 59 1/2, will it automatically be excluded? Or is there something I need to check off?

[JamesG1]

In TurboTax, when entering the pension distribution, at the screen Where is your distribution from?, correctly describe the pension distribution.

In the New York state income tax return, see the screen Retirement Distributions Summary.

New York Pension and Annuity Exclusion may be found here.

If you were age 59½ or older for the entire tax year, you may exclude up to $20,000 of your qualified pension and annuity income from your federal adjusted gross income for purposes of determining your New York adjusted gross income. If you became age 59½ during the tax year, the exclusion is allowed only for the amount of pension and annuity income received on or after you became 59½, but not more than $20,000. 

Married taxpayers who both receive pension income are each entitled to a maximum pension and annuity income exclusion of $20,000 whether they file jointly or separately. However, you cannot claim any unused portion of your spouse’s exclusion. If you receive your own pension income and your deceased spouse’s pension income, you are entitled to a maximum pension and annuity exclusion of $20,000 each year.

@lcampson