Taxpayer is retired and over 59 1/2 and is collecting a monthly income from her nonqualified deferred compensation plan from her prior employer. It's reported on a W-2, Box 1 $5k and Box 11 (nonqualified plans) $5k.
Would this qualify for the P & A subtraction on the IT-201? And, if so, have any you taken this subtraction without any issues?
Here's what I found in my research:
NYS PUB 36 says " Qualified pension & annuity income includes: periodic payments for services you performed as an employee before you retired."
Also, there was an Advisory Opinion, TSB-A-10(1)I, issued on 2/10/10 that addressed this specifically. The court held that a payment that meets the criteria of Sec. 6129c)(3-a), Tax Law, is all that is necessary to qualify for the exemption. The employer's reporting method is irrelevant (reported on W-2 v. 1099-R). I know this Advisory Opinion is only binding on the Department only with respect to the person to whom it it issued.
Thanks in advance for any feedback.
Grace
Would this qualify for the P & A subtraction on the IT-201? And, if so, have any you taken this subtraction without any issues?
Here's what I found in my research:
NYS PUB 36 says " Qualified pension & annuity income includes: periodic payments for services you performed as an employee before you retired."
Also, there was an Advisory Opinion, TSB-A-10(1)I, issued on 2/10/10 that addressed this specifically. The court held that a payment that meets the criteria of Sec. 6129c)(3-a), Tax Law, is all that is necessary to qualify for the exemption. The employer's reporting method is irrelevant (reported on W-2 v. 1099-R). I know this Advisory Opinion is only binding on the Department only with respect to the person to whom it it issued.
Thanks in advance for any feedback.
Grace
Comment