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IT-201-I (2025) Page 9 of 41 Line 26: Pensions of New York State and local governments and the federal government Did you receive a pension or other distribution from a New York State or local government pension plan or federal government pension plan that was included in your federal adjusted gross income? • If No, go to line 27. • If Yes, enter the amount of any pension you received—or any distributions made to you from a pension plan that represents a return of contributions in a year prior to retirement—as an officer, employee, or beneficiary of an officer or employee of any of the following: – New York State, including State and City University of New York and New York State Education Department employees who belong to the Optional Retirement Program.

Optional Retirement Program members may only subtract that portion attributable to employment with the State or City University of New York or the New York State Education Department. – Certain public authorities, including: • Metropolitan Transit Authority (MTA) Police 20-Year Retirement Program; • Manhattan and Bronx Surface Transit Operating Authority (MABSTOA); and • Long Island Railroad Company. – Local governments within the state. – The United States, its territories, possessions (or political subdivisions thereof), or any agency or instrumentality of the United States (including the military), or the District of Columbia. You may not subtract the following: • Pension payments or return of contributions that were attributable to your employment by an employer other than a New York public employer, such as a private university, and any portion attributable to contributions you made to a supplemental annuity plan which was funded through a salary reduction program. • Periodic distributions from government (IRC § 457) deferred compensation plans. However, these payments and distributions may qualify for the pension and annuity income exclusion described in the instructions for line 29. Nonemployee spouses You may include distributions you received from a New York State or local pension plan or from a federal government pension plan as a nonemployee spouse in accordance with a court-issued qualified domestic relations order (QDRO) that meets the criteria of IRC § 414(p)(1)(A) or in accordance with a domestic relations order (DRO) issued by a New York court. Line 28: Interest income on U.S. government bonds Did you include interest income from U.S. government bonds or other U.S. government obligations on lines 2, 6, or 11? • If No, go to line 29. • If Yes, enter the amount of interest income you earned from bonds or other obligations of the U.S. government. Dividends you received from a regulated investment company (mutual fund) that invests in obligations of the U.S. government and meet the 50% asset requirement each quarter qualify for this subtraction. The portion of the qualifying dividends that may be subtracted is based upon the portion of the taxable income received by the mutual fund that is derived from federal obligations. Contact the mutual fund for additional information on meeting the 50% asset requirement and calculating your allowable subtraction (if any). If you include an amount on line 28 from more than one line on Form IT-201, submit a schedule on a separate sheet showing the breakdown from each line. Do not list the same interest more than once on lines 28 and 31; see the instructions for Form IT-225, subtraction modification numbers S-121 and S-123. Line 29: Pension and annuity income exclusion Did you enter an amount of pension income or annuity income, or both (generally reported on line 9 or 10) that was not from a New York State or local government pension plan or federal government pension plan? • If No, go to line 30. • If Yes, and you were 59½ before January 1, 2025, enter the qualifying pension and annuity income included in your 2025 federal adjusted gross income, but not more than $20,000. If you became 59½ during 2025, enter only the amount you received after you became 59½, but not more than $20,000. If you received pension and annuity income and are married, or received pension and annuity income as a beneficiary, see Married taxpayers or Beneficiaries below. $20,000 limit: You may not take a pension and annuity income exclusion that exceeds $20,000, regardless of the source of the income. Qualifying pension and annuity income includes the following: • periodic payments for services you performed as an employee before you retired • periodic and lump-sum payments from an IRA, but not payments derived from contributions made after you retired • periodic distributions from government (IRC § 457) deferred compensation plans • periodic distributions from an annuity contract [IRC § 403(b)] purchased by an employer for an employee and the employer is a corporation, community chest, fund, foundation, or public school • periodic payments from an HR-10 (Keogh) plan, but not payments derived from contributions made after you retired • lump-sum payments from an HR-10 (Keogh) plan, but only if federal Form 4972 is not used. Do not include that part of your payment that was derived from contributions made after you retired • periodic distributions of benefits from a cafeteria plan (IRC § 125) or a qualified cash or deferred profit-sharing or stock bonus plan [IRC § 401(k)], but not distributions derived from contributions made after you retired Qualifying pension and annuity income does not include: • Distributions you received as a nonemployee spouse in accordance with a court-issued qualified domestic relations order (QDRO) that meets the criteria of IRC § 414(p)(1)(A) or in accordance with a domestic relations order (DRO) issued by a New York court. • Distributions you received as a result of an annuity contract purchased with your own funds from an insurance company or other financial institution. The payments are attributable to