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...GBZmHy0LBslB8A