Ask the Expert: Claiming the New York State tax exclusion
How do I claim New York’s $20,000 retirement income tax exclusion? Is there a special form?
No. You take this tax break on the second page of the New York State income tax return (Form IT-201).
For readers who don't know , the New York Pension and Annuity Income Exclusion is available to every state resident over age 59½ . Each eligible taxpayer can claim a tax exclusion on up to $20,000 of annual income from his or her tax-deferred retirement accounts, including individual retirement accounts and employer-sponsored retirement plans.
At the top of Page 2 of Form IT-201 there's a section called "Federal Income and Adjustments." That's where you list the income reported on your federal tax return, including "Taxable amount of IRA distributions."
On the same page, "New York Subtractions" is where you list amounts that are taxable on your federal return, but not taxed by New York. Among them: The taxable portion of your Social Security benefit; interest earned on U.S. bonds; and the New York Pension and Annuity Income Exclusion — up to $20,000 of your income from retirement accounts.
The bottom line
New Yorkers over age 59½ pay no state income tax on the first $20,000 of annual retirement income.
More information
bit.ly/taxslayernypensionannuity
How do I qualify for a spousal Social Security benefit?
You’re eligible for a benefit based on your spouse's work record if: 1) you’ve been married at least one year; 2) you're at least 62 years old; 3) your spouse has already applied for his/her own benefit; and 4) your spousal benefit is greater than one you’d get based on your own work record.
The bottom line
You can’t apply for a Social Security spousal benefit until your spouse has filed for his/her own benefit.
