I just noticed that TurboTax incorrectly calculated Line 29 on IT-201 for 3 consecutive tax years. What do I do?

[jiamaio]

I inherited an IRA from someone over age 70 and the distributions are supposed to be excluded from NYS taxes (line 29), but this amount is missing or is only a portion of the total distribution. How do I amend only my NYS tax return for 2023, 2024 and 2025?

[KrisD15 · Accepted solution]

Are there other beneficiaries? If so, the 20,000 limit is split between you all. 

Additionally, the exclusion is only on the amount of the distribution that is included in your Adjusted Gross Income for that year. 

Do either of these requirements answer the fact that the amount on your New York return is different than the total distribution? 

If not, can you provide any more details concerning your situation?  

[jiamaio]

Just one other beneficiary, so my limit is $10,000 annually. I checked my returns for all 3 years and it looks like the full amount of my distributions were included in my AGIs. Thank you for your help as this has been super frustrating because it's so particular to NYS and I have no idea why it's being miscalculated in TurboTax. What other information about my situation do you need?

[jiamaio]

Actually, maybe this simple example from my 2023 tax return will help. I took a $1000 distribution from my inherited IRA. This amount is on Line 9 of IT-201, with the box checked because I received it as a beneficiary. Line 29 only has an amount of $299.

When I go through the steps to amend my 2023 state return in TurboTax, this is what I'm seeing:

Total federal taxable non-disability pensions and IRA distributions: $1,000

New York deduction for government pensions: $0

New York deduction for railroad retirement: $0

New York deduction for other pensions: $299

Total taxable pensions and IRA distributions: $701

To edit any of the above information, you'll need to go back to your federal return.

[jiamaio]

Nevermind!