My income is from ny state retirement system and is exempt from state taxes

Assuming you are a NY State resident - per the instructions on page 5 for NY State IT-201 you must file if any of the following are true:

• You have to file a federal return.
• You did not have to file a federal return but your federal adjusted gross income for 2011 plus New York additions (see page 16) was more than $4,000 ($3,000 if you are single and can be claimed as a dependent on another taxpayer's federal return).
• You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
• You want to claim any of the refundable or carryover credits in the credit chart on pages 6 through 9.
• You are subject to the minimum income tax (see page 10).


You can read more detail from the instructions here: http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&ved=0CDcQFjAB&url=http%3A%2F%2Fwww.tax.ny.gov%2Fpdf%2F2011%2Finc %2Fit201i_2011.pdf&ei=sGtOT6WsMqTV0QHO--2zAg&usg=AFQjCNE3O1uTe-xZ2HbGm6_5YI2zT7-l2A&sig2=loKdLOesGBZmHy0LBslB8A