I suspect this is what NY is questioning you about.Note: If there is more than one beneficiary, the exclusion is prorated to the same percentage share as the distribution.
Lets say there were 4 beneficiaries. You can only exempt 25% of the distribution from that inherited IRA. It does not matter if the other beneficiaries live in NY or not. You can still exempt only 25% of what you withdrew (up to the 20k limit). If you were the only beneficiary then you could deduct the full amount of distribution (up to the 20k limit).
If you deducted the full amount of distribution, but there were more than one beneficiary, NY is probably wanting to correct that. The exclusion is prorated by the number of beneficiaries.
I'm not an expert, but that is my understanding of how it works.
Statistics: Posted by dknightd — Wed Nov 20, 2024 6:19 am