New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter A - New York State Personal Income Tax Under Article 22 Of The Tax Law › Article 3 - Nonresidents › Part 132 - New York Adjusted Gross Income of a Nonresident Individual › Methods of Allocating Income and Deductions from Sources Within and Without New York State › Section 132.20 - Pensions and other retirement benefits

Current through Register Vol. 46, No. 28, July 10, 2024
If a pension or other retirement benefit does not
						  qualify as an annuity under section
						  132.4(d) 
						  of this Part, and is attributable to services performed wholly within New York
						  State, the entire amount included in the individual's Federal adjusted gross
						  income is likewise includible in his New York adjusted gross income. If the
						  pension or other retirement benefit is attributable to services performed
						  wholly outside New York State, no part of the amount received is includible in
						  the individual's New York adjusted gross income. Where the employee's services
						  were performed partly within and partly without New York State, the amount
						  includible in the individual's New York adjusted gross income is the proportion
						  of the amount included in the individual's Federal adjusted gross income which
						  the total compensation, received from the employer for the services performed
						  in New York State during a period consisting of the portion of the taxable year
						  prior to retirement and the three taxable years immediately preceding the
						  retirement, bears to the total compensation received from the employer during
						  such period for services performed both within and without New York State. For
						  purposes of this section, the compensation for services performed within New
						  York State must be determined separately for each taxable year or portion of a
						  year in accordance with the applicable provisions of section
						  132.17,
						  132.18
						  or
						  132.19 
						  of this Part. A determination of the portion of a pension or other form of
						  deferred compensation attributable to New York State on the basis of a period
						  of time greater than the period referred to above may be made if the individual
						  establishes, to the satisfaction of the Tax Commission, the amount of his total
						  yearly compensation for a longer period of time and the amount allocable to New
						  York State in each year in accordance with the applicable provisions of
						  sections
						  132.17
						  through
						  132.19 
						  of this Part. (For taxability of pensions and other retirement benefits in
						  general, see section
						  132.4[d] 
						  of this Part.)
Example:
A, a nonresident of New York State, performs services
						  both within and without New York State for a corporate employer under an
						  employment contract whereby for each year's services he is to receive a salary
						  of $40,000 during the period of employment and an additional $100,000 payable
						  in 10 equal annual installments commencing after his employment terminates. A
						  terminates his employment on July 1, 1977, when he is 50 years of age and his
						  life expectancy is 25.5 years. Since the payments are not to run for at least
						  one half of A's life expectancy, they do not qualify as an annuity under
						  section
						  132.4(d) 
						  of this Part. Assuming that the New York State percentages for allocating his
						  salary were 50 percent for 1974, 60 percent for 1975, 75 percent for 1976, and
						  40 percent for the first half of 1977, the portion of additional payments to be
						  included in New York adjusted gross income would be computed as follows:
Total
									 compensation
New York
									 portion
1974
$ 40,000
(50%)
$20,000
1975
40,000
(60%)
24,000
1976
40,000
(75%)
30,000
1977 (6 months)
20,000
(40%)
8,000
Totals
$140,000
$82,000
$82,000/$140,000
												× $10,000 = $5,857.14 includible annually in A's New York adjusted gross
						  income.