New York Pension Subtraction
New York State allows individuals to subtract a portion of their pension and annuity income from their New York taxable income, providing relief for retirees. This subtraction is available under New York State Tax Law and is applied to reduce taxable income for individuals filing Form IT-201 or Form IT-203, depending on their filing status.
Eligibility and Amount
- Individuals may subtract up to $20,000 of pension and annuity income that was included in federal taxable income.
- This subtraction applies only to income that is part of federal adjusted gross income (AGI).
- The subtraction is claimed on Form IT-201, line 29, or Form IT-203, line 28, as applicable.
How to Claim the Subtraction
To claim the New York pension subtraction:
- Ensure your pension or annuity income is included in your federal taxable income.
- File Form IT-201 (for residents) or Form IT-203 (for nonresidents) with the New York State Department of Taxation and Finance.
- Enter the subtraction amount on the appropriate line (line 29 for IT-201 or line 28 for IT-203).
- Do not claim this subtraction on Form IT-225.
Important Notes
- The subtraction is limited to $20,000 per individual.
- It applies only to pension and annuity income that is part of federal AGI.
- Consult the instructions for Form IT-201 or IT-203 for detailed guidance based on your filing status.
Source:
FORM IT-2105.9.pdf
Form IT-360.1.pdf
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.