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Office of the New York State Comptroller’s Seal

NYS Comptroller

Thomas P. DiNapoli

Taxes and Your Pension

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Overview

This section will help you with a variety of tax-related questions and issues. You can also:

Is My Pension Taxable?

Your pension is subject to federal income tax, but it is not taxed by New York State. If you move out of New York, you may have to pay state taxes on your pension. Visit the Retired Public Employees Association website to see which states tax pensions.

Federal Tax Withholding Information

When you retired, we sent you a W-4P form Adobe pdf (Withholding Certificate for Pension or Annuity Payments) so you could choose the withholding tax status that was right for you.

Unless a retiree sends us a W-4P form telling us differently, we assume the tax status for our retirees is married with three exemptions. You can, however, change your withholding at any time. If we don’t receive your W-4P form in time to adjust your withholding for that month’s check, your changes will be applied the following month.

When you submit a W-4P form you can:

  • Choose your number of exemptions;
  • Indicate your marital status;
  • Tell us whether you want federal tax withheld; and
  • Let us know if you want a fixed amount of federal withholding deducted each month from your pension check.

If you are unsure how much to withhold, use our federal tax withholding calculator. Enter a marital status and a number of exemptions into the calculator to see how much we would withhold based on current tax tables. Visit our interactive W-4P form tutorial for help completing your form.

1099-R Information

We mail 1099-R forms by January 31. The amount reported in Box 5 on your 1099-R is the portion of your pension not subject to federal income tax. Generally, if you made after-tax contributions while employed, a small percentage of your pension will be excluded from taxation each year until all of your after-tax contributions are fully recovered. Visit our interactive 1099-R form tutorial for help understanding your 1099-R.

You can request a reprint of your 1099-R form beginning the second week in February. Request your copy:

(Rev. 1/17)