Hello all. I have been going back and forth with a few other tax professionals on this question and then I realized that with so many NY members on this forum someone must have seen this.
Here was my original question
Client is a retired NYC Police Officer. He receives 2 pensions (they are reported on Form 1099-R) - Police Pension Fund Article 2 and Police Superior Officers VSF. Do these pensions qualify to be fully subtracted on Line 25 of Form IT-203 or are they subtracted on Line 28 and subject to the $20,000 limitation?
After going back and forth - everyone says it is not taxable in NY because he is not a NY resident - I understand that but what I am not clear on is this
See attached. I understand that they are not taxable in NY because he is no longer a NY resident. So nothing is entered in the NYS amount column. My question is what amounts are entered on lines 25 and 28 in the Federal column. - hi-lited in orange. For now they are entered as only being subject to the $20,000 exclusion. Is that correct? It's not a big difference due to the small amount of NY income but it does affect the amount on line 32 which is used to calculate tax - after standard deduction (client does not itemize) - which is then allocated based on the ratios on Line 31.
Has anyone seen this and if so can you point me to a reference?
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Hyman Zacharia
President
Hyman J Zacharia CPA PA
hjz@yorkzacharia.com------------------------------