A 1992 New York Court of Appeals decision upholding New York’s method for imposing income tax on nonresidents trumps a subsequent federal law barring the use of pension income to calculate taxes, according to a recent determination of the Division of Tax Appeals.
Administrative Law Judge Arthur S. Bray upheld the state’s right to consider non-New York source pension income to calculate the tax rate imposed on New York-source income. For Irwin and Phyllis Nathan of Mount Sinai, that increased their tax bill to $4,330 from $810.
