Peter:
I have had a similar LIRR retiree who has the same W-2
The other accountant is correct, as a "LIRR Deferred comp payment the W-2 funds are treated similar to a "state or local" pension with the S-122 code flowing via the IT-225.
As per page 11 of the IT-225 instructions
"S-122 Certain railroad retirement income and railroad
unemployment insurance benefits
Enter supplemental annuity or Tier 2 benefits received under
the Railroad Retirement Act of 1974, or benefits received under
the Railroad Unemployment Insurance Act that are exempt from
state income taxes under federal laws (but that you included in
your federal income)."
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David Rothfeld
DAVID J. ROTHFELD, CPA
Hicksville NY
516-433-2129
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Original Message:
Sent: 03-09-2022 03:32 PM
From: Peter Hall
Subject: LIRR Retirement benefits
I have a client, retired from the LIRR who receives a W-2 each year from LIRR Retirement Plans Additional Pension . The W-2 has equal amounts in Box 1 and Box 11. Box 11 is non qualified plans. On the State return I've always included that amount as subject to the $20K pension exclusion. I have a new client whose previous accountant picked it up on line 31 as a subtraction on form IT-225, with a code of S-122 which references supplemental annuity or Tier 2 benefits exempt 100% from State tax. Is reporting the W-2 as an S-122 subtraction correct?
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Peter Hall
HALL CPA GROUP
Kings Park NY
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