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A00259 Summary:

BILL NOA00259
 
SAME ASNo Same As
 
SPONSORMagnarelli
 
COSPNSRStirpe, Cook, Steck, Benedetto, Jones, Eachus
 
MLTSPNSR
 
Amd §612, Tax L
 
Increases the tax exemption for pensions and annuities for persons age fifty-nine and one-half or greater from $20,000 to $27,000 in 2027, $30,000 in 2028, $35,000 in 2029 and $40,000 for each subsequent year.
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A00259 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           259
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 8, 2025
                                       ___________
 
        Introduced  by  M.  of  A.  MAGNARELLI,  STIRPE, COOK, STECK, BENEDETTO,
          JONES, EACHUS -- 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-seven thousand dollars for any taxable year beginning on
     9  or  after  January  first,  two  thousand  twenty-seven, thirty thousand
    10  dollars for any taxable year beginning on or after  January  first,  two
    11  thousand twenty-eight, thirty-five thousand dollars for any taxable year
    12  beginning on or after January first, two thousand twenty-nine, and forty
    13  thousand  dollars  in  each subsequent year, which are periodic payments
    14  attributable to personal services performed by such individual prior  to
    15  [his]  retirement  from employment, which arise (i) from an employer-em-
    16  ployee 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.
                                                                   LBD00834-01-5

        A. 259                              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] spouses file a joint state  personal
     8  income tax return, the modification provided for in this paragraph shall
     9  be  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.
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