NY non-resident 414(h) - exempt?

Forum|Forum|2 years ago
March 14, 2024
2 replies
0 views

Are my NY 414(h) contributions exempt from NY state tax if I'm never in state? Thanks!

TurboTax Home & Biz Windows

MayaD

No. If you are a member of a public employee retirement system (such as the New York State and Local Retirement System) and made 414(h) retirement contributions to your retirement plan, then you must report the contributions as an addition modification to your federal adjusted gross income on your New York State income tax return. This addition modification is reported on line 21 on Form IT-201, Resident Income Tax Return; or line 21 of Form IT-203, Nonresident and Part-Year Resident Income Tax Return.

The entry “IRC 414H” pertains to the pre-tax dollars used to pay pension contributions. The dollar amount in Box 14, IRC 414H, is pre-tax for federal tax purposes, but not for New York State and New York City tax purposes. Consequently, they must be added back in the area designated for that purpose on the New York State tax return at the time you file your taxes.

For more information, check: ny.gov

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

AminyAuthor

Thank you @MayaD . I was checking if my situation differs, as I am never in NYS, and hence don't pay state income tax there (see helpful posts from @kristinelbly). I wondered if the 414h has a similar structure as overall income tax.

AmyC

Employee

If you have to file a NY return, then it is added to the taxable income. Since you are a nonresident with no NY income, you do not need to file a return. It is not taxable income to you. See nonresident filing requirements in the Instructions for Form IT-203.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

AminyAuthor

Hi @AmyC - thank you. Agreed, I don't need to file an NY tax return as I owe no state income tax there.... unless I owe NY taxes on this 414(h), which is unclear. Do you know that 414(h) plans follows the same residency rules as NYS income taxes generally?

AmyC

Employee

So sorry I was not clear. When I looked in the nonresident instructions I posted, it shows all the reasons you need to file and the 414h is not among them. If you have nothing else, there is no reason to file a NY return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"