scrabbler1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 20, 2009
- Messages
- 6,704
I posted this in Bogleheads and got some good replies, but I thought I'd ask you folks, too.
It started as a small question about one topic but has since morphed into another, more important one related to it.
I am doing my (snake-bit) friend's NY State Income Tax return and I have a small question about it.
On Line 9 of Form IT-201 (the main tax form), I have to enter the taxable amount of his IRA distribution. The entire distribution is from an inherited IRA he received in late 2012 after his remaining parent (his mom) died. That is easy. But there is also a box to be checked if it is received as a beneficiary. Last year, I checked the box but I wonder if that was correct although he was not questioned on it. The IRA, as I stated above, is the result of his being a beneficiary after his mom's death but it is under his name only.
Should this box be checked even though it has no effect on his taxable income or his income tax bill? What purpose does this box serve?
I received several useful replies including a few which pointed to New York's Line 29, the one about excluding some Pensions and Annuity income from the overall income
I then read the instructions for Line 29 and I am wondering if he is entitled to exclude the RMD from his state income. If so, then I mistakenly failed to make this exclusion on his 2013 return. I could probably file an amended return to recover the money. I am checking with my friend's sister to see what she did on the 2013 return and what she is doing with the 2014 return.
Have any of you who live in NY with inherited IRAs excluded the RMDs from their NY income as long as the right conditions were met?
It started as a small question about one topic but has since morphed into another, more important one related to it.
I am doing my (snake-bit) friend's NY State Income Tax return and I have a small question about it.
On Line 9 of Form IT-201 (the main tax form), I have to enter the taxable amount of his IRA distribution. The entire distribution is from an inherited IRA he received in late 2012 after his remaining parent (his mom) died. That is easy. But there is also a box to be checked if it is received as a beneficiary. Last year, I checked the box but I wonder if that was correct although he was not questioned on it. The IRA, as I stated above, is the result of his being a beneficiary after his mom's death but it is under his name only.
Should this box be checked even though it has no effect on his taxable income or his income tax bill? What purpose does this box serve?
I received several useful replies including a few which pointed to New York's Line 29, the one about excluding some Pensions and Annuity income from the overall income
I then read the instructions for Line 29 and I am wondering if he is entitled to exclude the RMD from his state income. If so, then I mistakenly failed to make this exclusion on his 2013 return. I could probably file an amended return to recover the money. I am checking with my friend's sister to see what she did on the 2013 return and what she is doing with the 2014 return.
Have any of you who live in NY with inherited IRAs excluded the RMDs from their NY income as long as the right conditions were met?