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New York Pension and Annuity Income (Exclusion)

Understanding the Exclusion of Pension and Annuity Income in New York

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New York Pension and Annuity Income (Exclusion)

Pension and annuity income may be excluded from New York State (NYS) taxable income under specific conditions. This exclusion applies to certain types of pensions and annuities that are exempt under U.S. Code, Title 4, § 114, or meet the New York State definition of an annuity.

Excluded Income

  • Certain pensions exempt under U.S. Code, Title 4, § 114 are not included in New York source income.
  • Annuities and pensions that meet the New York State definition of an annuity are excluded, unless the annuity is used as an asset in a business, trade, profession, or occupation carried on in New York State.

Important Notes

  • Exclusions apply only to New York source income and do not affect federal adjusted gross income (AGI).
  • For nonresidents, New York source income includes income derived from New York State sources during the nonresident period.
  • Residents must report all New York source income, including pensions and annuities, unless specifically excluded.

Source:

FORM IT-2105.9

Form IT-2104-P

Disclaimer: Always verify with the official Federal or State Department of Revenue Forms and Instructions for the most accurate and up-to-date tax information.

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Key Takeaways

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