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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.
She also received her NYS pension, which is all excludable. Is there an additional $20,000 excluded or not
she is a NYC teacher
Are you "here" in chat?
Okay. The $20,000 exclusion is in ADDITION to the general tax free nature of the teacher's pension.
so she gets 2 different kinds of exclusions
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.
Yes, two different exclusions.
thanks so much
is the 403 b considered an annuity is that why its addition
The 403B is just a pension like an IRA or a 401K. The fact that it's an annuity is beside the point, really.
Do you need anything else?
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
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.
her birth date is 11/26/51 do I calculate 7/12th's of $20,000 as an exemption