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 2019, $30,000 in 2020, $35,000 in 2021 and $40,000 for each subsequent year.
STATE OF NEW YORK
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414--A
2017-2018 Regular Sessions
IN SENATE(Prefiled)
January 4, 2017
___________
Introduced by Sens. FELDER, AKSHAR, BOYLE, CARLUCCI, GALLIVAN,
MARCHIONE, MURPHY, PHILLIPS, RANZENHOFER, SERINO, TEDISCO -- read
twice and ordered printed, and when printed to be committed to the
Committee on Investigations and Government Operations -- recommitted
to the Committee on Investigations and Government Operations in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
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 nineteen, thirty thousand dollars
10 for any taxable year beginning on or after January first, two thousand
11 twenty, thirty-five thousand dollars for any taxable year beginning on
12 or after January first, two thousand twenty-one, and forty thousand
13 dollars in each subsequent year, which are periodic payments attribut-
14 able to personal services performed by such individual prior to his
15 retirement from employment, which arise (i) from an employer-employee
16 relationship or (ii) from contributions to a retirement plan which are
17 deductible for federal income tax purposes. However, the term "pensions
18 and annuities" shall also include distributions received by an individ-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00555-04-8
S. 414--A 2
1 ual who has attained the age of fifty-nine and one-half from an individ-
2 ual retirement account or an individual retirement annuity, as defined
3 in section four hundred eight of the internal revenue code, and distrib-
4 utions received by an individual who has attained the age of fifty-nine
5 and one-half from self-employed individual and owner-employee retirement
6 plans which qualify under section four hundred one of the internal
7 revenue code, whether or not the payments are periodic in nature. Never-
8 theless, the term "pensions and annuities" shall not include any lump
9 sum distribution, as defined in subparagraph (D) of paragraph four of
10 subsection (e) of section four hundred two of the internal revenue code
11 and taxed under section six hundred three of this article. Where a
12 husband and wife file a joint state personal income tax return, the
13 modification provided for in this paragraph shall be computed as if they
14 were filing separate state personal income tax returns. Where a payment
15 would otherwise come within the meaning of the term "pensions and annui-
16 ties" as set forth in this paragraph, except that such individual is
17 deceased, such payment shall, nevertheless, be treated as a pension or
18 annuity for purposes of this paragraph if such payment is received by
19 such individual's beneficiary.
20 § 2. This act shall take effect immediately.
