topic NY State handling of CARES Act Distributions in State tax filing

NY State handling of CARES Act Distributions

leebix01 — Fri, 05 Mar 2021 18:16:43 GMT

I took a CARES Act IRA Distribution. Does NY provide any tax relief for this? It does not appear to after running my NY Return.

Re: NY State handling of CARES Act Distributions

ErnieS0 — Sun, 07 Mar 2021 19:01:59 GMT

New York follows federal rules for CARES Act IRA distributions, i.e. the income will be included in New York adjusted gross income in the same year it is included in federal adjusted gross income. If you elected to spread your distribution out over three years for federal, NY will pick up the same amount.

If something does not look right, go back and checked the 1099-R section.

Type 1099r in Search in the upper right
Click Jump to 1099r

Related Resources:

New York State tax implications of the federal CARES Act

Re: NY State handling of CARES Act Distributions

clover716 — Wed, 10 Mar 2021 19:36:25 GMT

I am also having this problem. In fact it keeps coming up in review and says that more updates related to retirement distribution, Cares Act in NY are still to come. DO you have any information on this? When we can expect an update or what it may be?

Re: NY State handling of CARES Act Distributions

ReneeM7122 — Wed, 10 Mar 2021 22:52:22 GMT

You are correct, the CARES Act early distribution penalty waiver on form 8915-E is ready and functioning in the TurboTax software, but New York has not yet updated it on their end although they will follow the Federal mandate. Our engineers will push an update to TurboTax Online when it is ready, which should be any day, and the software will need to be manually updated if it is installed on your computer.

Here is a link to the NYS Dept of Finance website.

Here's a TurboTax article about the CARES Act and early distributions.

@clover716

Re: NY State handling of CARES Act Distributions

clover716 — Fri, 12 Mar 2021 19:44:37 GMT

It looks like it was updated... but the amount I owe to NY did not adjust at all. Does that seem right? @ReneeM7122

Re: NY State handling of CARES Act Distributions

AmyC — Wed, 17 Mar 2021 21:56:52 GMT

Yes. NY uses your federal AGI as the basis of determining your NY AGI. If your federal AGI had the correct income, then your NY would have been calculated correctly. Software is separate from taxation.