How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TaxWhisperer Your Own Question

TaxWhisperer
TaxWhisperer, Enrolled Agent
Category: Tax
Satisfied Customers: 620
Experience:  Tax Problem Solver extraordinare. I address IRS Notices, Liens, Levies, audits, etc.
63791118
Type Your Tax Question Here...
TaxWhisperer is online now
A new question is answered every 9 seconds

I have a client that has a distribution from a 403 b plan

Resolved Question:

I have a client that has a distribution from a 403 b plan in NYS.

Is that distribution taxable on the NYS it 201 tax return
Submitted: 2 years ago.
Category: Tax
Expert:  TaxWhisperer replied 2 years ago.

TaxWhisperer :

Yes, it's taxable. It's the 414(h) plans (state and local) you are thinking of where it might not be taxable. Please note NY has a $20,000 pension exclusion if you are over 59 when you receive a pension. The first $20K is tax free.

Customer:

She also received her NYS pension, which is all excludable. Is there an additional $20,000 excluded or not

Customer:

she is a NYC teacher

TaxWhisperer :

Are you "here" in chat?

Customer:

yes

TaxWhisperer :

Okay. The $20,000 exclusion is in ADDITION to the general tax free nature of the teacher's pension.

Customer:

so she gets 2 different kinds of exclusions

TaxWhisperer :

There should be code in your software where you flag the 403B as being eligible for the exclusion. It's not something you should have to do manually.

Customer:

ok thanks

TaxWhisperer :

Yes, two different exclusions.

TaxWhisperer :

NP

Customer:

thanks so much

Customer:

is the 403 b considered an annuity is that why its addition

TaxWhisperer :

The 403B is just a pension like an IRA or a 401K. The fact that it's an annuity is beside the point, really.

TaxWhisperer :

Do you need anything else?

Customer:

ok thanks

TaxWhisperer, Enrolled Agent
Category: Tax
Satisfied Customers: 620
Experience: Tax Problem Solver extraordinare. I address IRS Notices, Liens, Levies, audits, etc.
TaxWhisperer and 6 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

is there any refernce to the tax law.

 

I couldnt find any mention of the exclusion on the NYS website.

 

Do all taxpayers get 2 exclusions if they have a pension and 403 b

Expert:  TaxWhisperer replied 2 years ago.

There are two different code sections. 612(c)(3)(i) excludes the teachers pension.

612(c)(3-a) is the $20,000 exclusion.

 

Please start a new post for follow up questions. Thanks.

Customer: replied 2 years ago.
is it age dependent for a teacher ie 59 years old? or does the exemption apply regardless of age for those in the educational field
Expert:  TaxWhisperer replied 2 years ago.

The $20,000 exemption ONLY applies to those over 59 1/2.

The teacher applies regardless of age.

Charles
Customer: replied 2 years ago.

her birth date is 11/26/51 do I calculate 7/12th's of $20,000 as an exemption

Expert:  TaxWhisperer replied 2 years ago.
No, but the $20,000 limit starts the date she turned 59 1/2.

That is, if you waited till 59 1/2 to take $20K out, she gets the full $20,000 NY exemption.

Would you PLEASE click Accept on these follow on question?
Customer: replied 2 years ago.
Sorry litt;e confusd I have to ask when she got the distrubution.< if she received it before turning 59 1/2 all would be taxed on NYS? If she got it in monthly increments then how do I calculate how much if any is exempt
Customer: replied 2 years ago.
See above question
Customer: replied 2 years ago.
What if she got the payments monthly after she reached 59 1/2. Do I just use those payments subject to $20,000 exemption as the deduction on her NYS return

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
TaxWhisperer
TaxWhisperer
Tax Professional
620 Satisfied Customers
Tax Problem Solver extraordinare. I address IRS Notices, Liens, Levies, audits, etc.