Need clarification for NY pension exclusion

[taxit]

Need clarification for NY pension exclusion

Yesterday, 11:31 AM

New York preparers - Thanks for any assistance!

I have a PA resident working in New York. The W2 shows an amount in Box 11 , nonqualified deferred comp. The software is allowing a $20,000.00 pension exclusion on line 28 of IT-203. The NY instruction say if there is an entry on line 10 NY column you may qualify for the pension exclusion. There is no entry on line 10. Does the deferred comp qualify for the exclusion? My client is 65 yrs old.

[schirallicpa]

Deferred comp is not the same as pension.  Deferred just means your earnings get taxed later on when you take the income, instead of taxing when you actually earn it.   If it is NYS sourced income, it is taxable income in NYS.  

[taxit]

Thank you for your response. I know the deferred comp is not pension. My problem is the software is showing a $20,000.00 pension exclusion for New York IT-203. The NY instructions for the pension exclusion mentions W2 box 11 deferred comp but does not give much detail. This is the only NY return I do and have done it for many years. This is the 1st year my client has deferred comp in box 11 of his w2 and the pension exclusion is showing up.

[KATHERINE]

Hi TAXIT, in NY, anyone who is more than 59.5 years old can exclude up to $20K per person annually from retirement.  So, since 11 was included into box 1 of W2 and categorized as taxable income, if the taxpayer is more than 59.5, then, should allow him to exclude up to $20K.   so, your software is correct.   Thank you! --Kate

[taxit]

Thank you Kate. 

[Lion EA]

Thanks, Kate. As my commuters age, this will pop up for me any day now, so I appreciate your explanation.

[michaelmars]

Be aware of who the W-2 is from.  Some qualify for unlimited exclusion.

[Lion EA]

Had one today. He's over 59.5, worked for a private company,  $$ in Boxes 1 and 11, so can exclude $20K which is more than enough this year. So glad this thread was here. You all saved me some time proofreading this return!