Related to:
Letter Ruling

Letter Ruling Letter Ruling 81-91: New York State Contributory Pension

Date: 10/07/1981
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Personal Income Tax

 

October 7, 1981

You inquire whether income received by a Massachusetts resident from a New York State contributory public employee pension, which is included in Massachusetts Part B taxable income under existing law, will be excluded therefrom when paragraph 3-a of N.Y. Tax Law, Section 612(c) takes effect.

Massachusetts General Laws Chapter 62, Section 3(B)(a)(4) provides a deduction from Part B adjusted gross income of:

"… any income from a contributory annuity, pension endowment or retirement fund of any state or any political subdivision thereof, provided that income from any such similar fund established under the laws of the commonwealth is not subject to taxation in such other state or political subdivision." (Emphasis supplied).

Paragraph 3-a of the N.Y. Tax Law, Section 612(c) provides that the following are subtracted from federal adjusted gross income in determining New York adjusted gross income:

"Pensions and annuities, not otherwise excluded pursuant to paragraph three of this subsection [relating to pensions of officers and employees of New York State, its subdivisions and agencies], to the extent includible in gross income for federal income tax purposes, but not in excess of twenty thousand dollars received by an individual who has attained the age of fifty-nine and one-half…".

Paragraph 3-a was added by 1981 N.Y. Laws, Chapter 103, effective May 15, 1981, and applies to taxable years commencing on or after January 1, 1982.

Since, after paragraph 3-a takes effect, income from Massachusetts contributory public employee pensions will continue to be taxed to New York residents who have not attained age 59½, as well as to New York residents of any age to the extent the income exceeds $20,000, the deduction set forth in Chapter 62, Section 3(B)(a)(4) will not apply. Therefore, a Massachusetts resident who receives income from a New York State contributory public employee pension will continue to include it in his Massachusetts Part B taxable income after N.Y. Tax Law, Section 612(c)(3-a) takes effect.

Enclosed is a copy of Technical Information Release 80-4, issued November 14, 1980, which describes the Massachusetts income taxation of contributory pensions from other states.
 

Very truly yours,
 

/s/L. Joyce Hampers
 

L. Joyce Hampers
Commissioner of Revenue
 

 

LR 81-91

Referenced Sources:

Feedback

Did you find what you were looking for on this webpage? * required
We use your feedback to help us improve this site but we are not able to respond directly. Please do not include personal or contact information. If you need a response, please locate the contact information elsewhere on this page or in the footer.
We use your feedback to help us improve this site but we are not able to respond directly. Please do not include personal or contact information. If you need a response, please locate the contact information elsewhere on this page or in the footer.

If you need to report child abuse, any other kind of abuse, or need urgent assistance, please click here.

Tell us what you think