Bill Text: NY A00208 | 2023-2024 | General Assembly | Introduced

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Bill Title: Increases the tax exemption for pensions and annuities for persons age fifty-nine and one-half or greater from $20,000 to $25,000 in 2025, $30,000 in 2026, $35,000 in 2027 and $40,000 for each subsequent year.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A00208 Detail]

Download: New_York-2023-A00208-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           208

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 4, 2023
                                       ___________

        Introduced  by  M. of A. MAGNARELLI, STIRPE, COOK, LUPARDO, STECK, BENE-
          DETTO, JONES -- read once and referred to the Committee  on  Ways  and
          Means

        AN ACT to amend the tax law, in relation to increasing the exemption for
          pensions and annuities for certain persons

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
     2  law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
     3  2015, is amended to read as follows:
     4    (3-a) Pensions  and  annuities  received  by  an  individual  who  has
     5  attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
     6  pursuant to paragraph three of this subsection, to the extent includible
     7  in gross income for federal income tax purposes, but not  in  excess  of
     8  [twenty]  twenty-five thousand dollars for any taxable year beginning on
     9  or after  January  first,  two  thousand  twenty-five,  thirty  thousand
    10  dollars  for  any  taxable year beginning on or after January first, two
    11  thousand twenty-six, thirty-five thousand dollars for any  taxable  year
    12  beginning  on  or  after  January  first, two thousand twenty-seven, and
    13  forty thousand dollars in  each  subsequent  year,  which  are  periodic
    14  payments  attributable to personal services performed by such individual
    15  prior to his retirement from employment, which arise (i) from an employ-
    16  er-employee relationship or (ii) from contributions to a retirement plan
    17  which are deductible for federal income tax purposes. However, the  term
    18  "pensions and annuities" shall also include distributions received by an
    19  individual  who  has attained the age of fifty-nine and one-half from an
    20  individual retirement account or an individual  retirement  annuity,  as
    21  defined  in section four hundred eight of the internal revenue code, and
    22  distributions received by an individual who  has  attained  the  age  of
    23  fifty-nine and one-half from self-employed individual and owner-employee

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00304-01-3
        A. 208                              2

     1  retirement  plans  which  qualify  under section four hundred one of the
     2  internal revenue code, whether or  not  the  payments  are  periodic  in
     3  nature.  Nevertheless,  the  term  "pensions  and  annuities"  shall not
     4  include  any  lump  sum  distribution, as defined in subparagraph (D) of
     5  paragraph four of subsection (e) of section  four  hundred  two  of  the
     6  internal  revenue code and taxed under section six hundred three of this
     7  article. Where a husband and wife file a joint state personal income tax
     8  return, the  modification  provided  for  in  this  paragraph  shall  be
     9  computed  as  if  they  were  filing  separate state personal income tax
    10  returns. Where a payment would otherwise come within the meaning of  the
    11  term  "pensions  and  annuities"  as set forth in this paragraph, except
    12  that such individual is deceased, such payment shall,  nevertheless,  be
    13  treated  as  a pension or annuity for purposes of this paragraph if such
    14  payment is received by such individual's beneficiary.
    15    § 2. This act shall take effect immediately.