Exempts pension and annuity disbursements of up to one hundred thousand dollars from the gross income of qualifying individuals impacted by the COVID-19 pandemic.
STATE OF NEW YORK
________________________________________________________________________
5369
2021-2022 Regular Sessions
IN ASSEMBLY
February 16, 2021
___________
Introduced by M. of A. DILAN -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to exempting certain pension
and annuity disbursements from the gross income of qualifying individ-
uals impacted by the COVID-19 pandemic; and providing for the repeal
of such provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (c) of section 612 of the tax law is amended by
2 adding a new paragraph 3-d to read as follows:
3 (3-d) (i) Pensions and annuities received by a qualifying individual,
4 not otherwise excluded pursuant to paragraph three of this subsection,
5 to the extent includible in gross income for federal income tax
6 purposes, but not in excess of one hundred thousand dollars, which are
7 periodic payments attributable to personal services performed by such
8 individual prior to his retirement from employment, which arise (A) from
9 an employer-employee relationship or (B) from contributions to a retire-
10 ment plan which are deductible for federal income tax purposes. However,
11 for the purposes of this paragraph, the term "pensions and annuities"
12 shall also include distributions received by a qualifying individual
13 from an individual retirement account or an individual retirement annui-
14 ty, as defined in section four hundred eight of the internal revenue
15 code, and distributions received by a qualifying individual from self-
16 employed individual and owner-employee retirement plans which qualify
17 under section four hundred one of the internal revenue code, whether or
18 not the payments are periodic in nature. The term "pensions and annui-
19 ties" shall additionally include any lump sum distribution, as defined
20 in subparagraph (D) of paragraph four of subsection (e) of section four
21 hundred two of the internal revenue code and taxed under section six
22 hundred three of this article. Where a husband and wife file a joint
23 state personal income tax return, the modification provided for in this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09169-01-1
A. 5369 2
1 paragraph shall be computed as if they were filing separate state
2 personal income tax returns. Where a payment would otherwise come within
3 the meaning of the term "pensions and annuities" as set forth in this
4 paragraph, except that such individual is deceased, such payment shall,
5 nevertheless, be treated as a pension or annuity for purposes of this
6 paragraph if such payment is received by such individual's beneficiary.
7 (ii) For the purposes of this paragraph, the term "qualifying individ-
8 ual" shall mean an individual who:
9 (A) has been diagnosed with novel coronavirus COVID-19;
10 (B) has a spouse or dependent who has been diagnosed with novel coro-
11 navirus COVID-19; or
12 (C) has experienced one or more of the following financial impacts
13 from COVID-19:
14 (I) mandatory quarantine;
15 (II) furlough, layoff or a reduction in work hours;
16 (III) inability to work due to a lack of childcare availability;
17 (IV) mandatory closing or reduction in hours of an individual's busi-
18 ness;
19 (V) reduced salary or self-employment income; or
20 (VI) rescinded job offer or a delayed job start date.
21 (iii) The commissioner shall promulgate any rules or regulations
22 necessary to implement the provisions of this paragraph.
23 § 2. Section 603 of the tax law is amended by adding a new subsection
24 (c) to read as follows:
25 (c) Notwithstanding any provision of law to the contrary, the tax
26 imposed pursuant to the provisions of this section shall not apply the
27 first one hundred thousand dollars of a lump sum distribution to a qual-
28 ifying individual as defined in subparagraph (ii) of paragraph three-d
29 of subsection (c) of section six hundred twelve of this article.
30 § 3. This act shall take effect immediately and shall apply to taxable
31 years beginning on or after January 1, 2021, and shall expire and be
32 deemed repealed 3 years after such effective date.