3- yr covid distribution on New York State

[mrbarrytax]

i will be doing covid 3 year apportion of four forms 1099-R, 2 of which are fully tax deductible on state , how will state know that 1/3 of distrubuition is tax-free in the second and third year?

[New York Enrolled Agent]

i will be doing covid 3 year apportion of four forms 1099-R, 2 of which are fully tax deductible on state , how will state know that 1/3 of distrubuition is tax-free in the second and third year?

First, give more details why they are fully tax deductible on NYS. Second, there may not yet be guidance on this since you’re asking a question about 2021 and 2022 tax returns.

[mrbarrytax]

the pensions are fully exempt since they are nyc teacher retirement system pensions

[New York Enrolled Agent]

the pensions are fully exempt since they are nyc teacher retirement system pensions

Those pensions are not eligible COVID distributions. They don't qualify for any 3-year spread. Check the eligible plans at §402(c)(8)(B).

[Lion]

https://www.tax.ny.gov/pit/cares-act-faq.htm

The federal CARES Act allows coronavirus-related distributions from an eligible retirement plan to be included in income over a three-year period. Will New York State follow this treatment?

New York State follows the federal treatment. The income will be included in New York adjusted gross income in the same year it is included in federal adjusted gross income.

[TAXNJ]

https://www.tax.ny.gov/pit/cares-act-faq.htm

The federal CARES Act allows coronavirus-related distributions from an eligible retirement plan to be included in income over a three-year period. Will New York State follow this treatment?

New York State follows the federal treatment. The income will be included in New York adjusted gross income in the same year it is included in federal adjusted gross income.

Thank you for the information. Exactly what a colleague was inquiring about available NY guidance.