The State of New York does not tax pension distributions from a New York state or a local government pension plan or federal government pension plan. For more information on the kinds of plans this includes, see the Form IT-201 instructions or Publication 36 linked below.
If included in federal AGI, pension distributions other than those from a New York state or local government plan or federal government pension plan are taxed, however a taxpayer aged 59-1/2 qualifies for an exclusion of up to $20,000. In the year the taxpayer turns age 59-1/2 the exclusion is applicable only to the portion of the pension income they received after turning age 59-1/2. For married taxpayers filing jointly, the $20,000 exclusion is per spouse.
To adjust the taxable amount of pensions and annuities in the New York resident income tax return in TaxSlayer Pro, from the New York Tax Return Menu select:
- New York Taxable Income
- New York Subtractions from Federal AGI
- Pension and annuity income exclusion
- Taxable Pensions Over 59-1/2 - Enter the amount of non-governmental pension received that is excludible, up to $20,000.
- Taxable Pensions NYS\Local & Fed Govt - Enter the amount of governmental pension received that is exempt from taxation.
Additional Information:
New York DTF: Form IT-201 Instructions
New York DTF: Publication 36, General Information for Senior Citizens and Retired Persons