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Christopher Church
Christopher Church,
Category: Tax
Satisfied Customers: 10
Experience:  director of accounting at cablevision
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I am turning 70 in May this year. My NYS tax is exempt up to

Customer Question

I am turning 70 in May this year. My NYS tax is exempt up to 20,000.00. I now have to start taking money out of my tax deferred. Do I need to pay State taxes on this money or can it be part of my tax exempt up to 20,000.00
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Your pension income is not taxable in New York if it is paid by:

Expert:  Lev replied 1 year ago.

If you are over the age of 59 ½ or turn 59 ½ during the tax year, you may qualify for a private pension and annuity exclusion of up to $20,000. This exclusion from New York taxable income applies to pension and annuity income included in your federal adjusted gross income.

Here are some additional details

https://www.tax.ny.gov/pdf/publications/income/pub36.pdf

See page 13

Qualified pension and annuity income includes:
• periodic payments for services you performed as an employee before you retired;
• periodic and lump-sum payments from an IRA attributable to compensation for personal services, but not payments derived from contributions made after you retired that are not attributable to compensation for personal services;
• periodic distributions from an annuity contract (IRC section 403(b)) purchased by an employer for an employee, and the employer is a corporation, community chest fund, foundation or public school;
• periodic payments from an HR-10 (Keogh) plan, but not payments derived from contributions made after you retired;
• lump-sum payments from an HR-10 (Keogh) plan, but only if federal Form 4972, Tax on Lump Sum Distributions, is not used. Do not include that part of your payment that was derived from contributions made after you retired;
• periodic distributions from deferred compensation plans sponsored by state and local governments and tax-exempt organizations (under IRC section 457); and

• periodic distributions of benefits from a cafeteria plan (IRC section 125) or a qualified cash or deferred profit-sharing or stock bonus plan (IRC section 401(k)), but not distributions derived from contributions made after you retired.

Let me know if you need any help with reporting.

Otherwise,

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Expert:  Christopher Church replied 1 year ago.

Hi Jennifer, are you looking for a formula in excel to do the calculation?

Expert:  Christopher Church replied 1 year ago.

Hi Jennifer, are you looking for a formula in excel to do the calculation?