New York: Tax Reform  2014 clarifies the tax treatment of length of service awards for volunteer firefighters and ambulance workers.

Effective for taxable years beginning on or after January 1, 2014, the legislation creates a subtraction modification for awards paid to these workers that were included in gross income for Federal tax purposes. The subtraction does not apply to lump sum payments or distributions to those taxpayers who have not reached the age of 59½.

Although awards were previously not generally subject to NY tax, the legislation clarifies their tax treatment.