Tag Archives: Tax

NYSLRS Tax Overview

Tax season is ramping up, so it’s a good time to talk about the tax information related to your NYSLRS pension benefit.

1099-Rs

NYSLRS retirees and beneficiaries who receive a taxable benefit from NYSLRS are sent a 1099-R form each year. Certain NYSLRS members may also receive a 1099-R tax form if, for example, you borrow a taxable NYSLRS loan, default on a NYSLRS loan, or if you end your membership and withdraw your contributions. The 1099-R is a statement that shows:

  • The total benefit paid to you in a calendar year.
  • The taxable amount of your benefit.
  • The amount of taxes withheld from your benefit.

We mail out all 1099-R forms — more than 500,000 — by January 31, so if you haven’t already received your form, be sure to check your mail over the next few days.

If you lose your 1099-R, you can request a reprint from us starting the second week of February. Once reprints are available, we’ll process requests each night and mail them out the next day. This year, reprints will be available for calendar years 2013, 2014, and 2015.

1099-R Interactive Tutorial

1099-r tax form tutorial screenshot

Understanding your 1099-R Tutorial

We feature an interactive tutorial about the 1099-R form on our website. It walks you through a sample 1099-R, and offers a short explanation of specific boxes on the form.

Changing Your Federal Tax Withholdings

Your NYSLRS pension benefit is subject to federal taxes. You can change your federal tax withholding status at any time by sending us a W-4P form. (A handy tutorial about the W-4P form that walks you through the steps on filling it out is available on our website.)

W4-P Tax form tutorial screenshot

Understanding your W-4P Form Tutorial

We also offer a federal tax withholding calculator on our website to help you estimate how much should be withheld.

If you have other tax-related questions about your benefit, please visit our Tax FAQs.

Need to Know Tax Information for NYSLRS Retirees

If you haven’t filed your tax returns, here’s some useful information that may help you:

The W-4P Form

Your retirement benefit from the New York State & Local Retirement System (NYSLRS) isn’t subject to New York State income tax, but it is subject to federal income tax. The W-4P form determines withholdings from your pension payments.

NYSLRS takes care of your estimated tax payment requirement by withholding money from your pension based on your W-4P. If you’re receiving a NYSLRS pension, you need to file a W-4P to determine how much to withhold.

Significance of the W-4P

If you don’t have enough withheld from your retirement income during the year, you could find yourself owing the Internal Revenue Service (IRS) extra in interest and penalties when you file your tax return.

Changing Your W-4P

You can submit a new W-4P form whenever you want as your life circumstances change. Don’t know how much you want withheld from your pension? Our Withholding Tax Calculator can help you figure out the amount. If you need to update your withholding status, you can send us an updated W-4P form. Make sure you check out our W-4P tutorial if you have questions about filling out the form.

Other Tax Information Resources

If you have questions about your 1099-R tax form – the form that reports your pension distributions from us – our 1099-R tutorial can help.

If you are a retiree receiving regular monthly pension checks from NYSLRS, you may also want to read our Frequently Asked Questions dealing with taxes and your retirement benefit.

And if you ever have any other retirement-related questions that we can assist you with, please don’t hesitate to contact us via this email form: https://nysosc9.osc.state.ny.us/product/ccsub.nsf/fsWeb?OpenFrameset. One of our representatives will respond back to you within 3 to 5 business days.