New York preparers - please help

[oceanlovin'ea]

I have a client that moved to Florida from NYC on 9/28/05. She is 43 years old. She worked for Con Edison.

When she moved, she took her retirement out - almost $97,000. She also had wages for 8 months and sold her Con Edison stock.

Is all of this taxable in New York? How about NYC? I read something about some pension distributions not being taxable in New York, but can't figure out if this applies to her.

Thanks for your help.

Linda F

[BOB W]

Linda

Your client needs to file a IT-203 part-year resident as well as a partyear resident for NYC- I believe it is form R112. The portion of her income while a NYS/NYC resident is reported as NY income. Yes there is a $20,000 pension exclusion for non NYS goverment employees. Off the top on my head I don't think Con Ed pensions are considered NYS exempt except for the first $20,000.

If she sold Con Ed Stock after she moved, it would not be NYS/NYC income, unless it was a code V on her W2.

When did she cash in her pension? After she moved or before?

Hope this gets you started going....................

[Unregistered]

A couple of cautions

#1 The 20K pension exclusion is only available to TPs who are 59.5 or older.

#2 The NYC part year resident form is IT-360. NYC only taxes the income of RESIDENTS. NYS does tax non-residents on NY source income. When you file an IT-203 you may have income from both the resident & non-resident periods. Pensions by virtue of federal law are not source income. HOWEVER, timing is everything. If the TP took a distribution while a resident, it is taxable.

#3 Con Ed is a private company - no special pension exclusion except the 20K referenced above. Your TP is too young for that.

Good luck.
NY Enrolled Agent

[oceanlovin'ea]

Answers to ???

She stopped working in August and moved to Florida the end of September. So I am pretty sure that she got her money from the stock and the pension before she left NY.

She is taking an insurance course and will start working soon in Florida. So she didn't have any income after she moved.

So it sounds like all her income is taxable both in New York and NYC. Is that correct? Or is some of it not taxable in NYC?

Thanks

Linda

[Unregistered]

Based on your post, all her income appears to be derived from sources while a RESIDENT of both NYS & NYC. Her "pension" distribution appears to be a lump sum and apparently not rolled over. Therefore, all of her income is subject to both NYS & NYC tax for her period of residency.

NY Enrolled Agent

[BOB W]

Appology...

.. Linda & EA New York for not being complete in my remarks. I shouldn't of answered unless I was awake enough to answer correctly. I never picked on her age (sorry) and I haven't done a NYC part year in many years, but I should of looked up the form number anyway. I will be sure to only speak with info I have research.