Bill > S07211

This bill amends the New York State tax law to increase the maximum pension and annuity exclusion from federal adjusted gross income from $20,000 to $22,000 for individuals who have reached the age of 59.5. The exclusion applies to periodic payments from employment-related retirement plans or contributions to retirement plans that are tax-deductible, including distributions from individual retirement accounts (IRAs), individual retirement annuities, and self-employed retirement plans. The bill clarifies that lump-sum distributions are not included in this exclusion. When spouses file a joint state tax return, the modification will be calculated as if they were filing separate returns. The bill also ensures that if the original pension recipient is deceased, their beneficiary can still receive the pension or annuity under these terms. The changes will take effect immediately and apply to taxable years beginning on or after the bill's enactment date, providing a modest tax benefit for retirees by allowing them to exclude an additional $2,000 of retirement income from their state taxes.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S7211