TurboTax incorrectly calculated something on my NYS return that I already filed. How do I amend only my NYS return?

[jiamaio]

I inherited an IRA from someone who was over age 70, so my distribution (IT-201, line 9) is supposed to be excluded from NYS taxes (line 29), but the full amount is not there.

[mring1515]

same issue, it missed the pension exclusion completely

[RogerD1]

One key factor for the exclusion is that you need to be at least age 59-1/2 in order to get the pension exclusion in New York - or in the case of a decedent IRA, the decedent would need to have been 59-1/2 in the year of the IRA distribution.  If these situations are true for you, follow the next steps to get the exclusion to appear on your tax return.

If you go back to your New York return, Under Changes to Federal Income, click Update for Adjustments to federal income.

Under Wage and retirement adjustments, click on Start or Update by Received retirement income.

Click Edit for the beneficiary IRA.  Select Yes on the next screen.

Enter the decedent information on the next screen.  For the $20,000 pension exclusion, you need to allocate that exclusion amongst all the beneficiaries, so the percentage share will be 100% for one beneficiary, 50% for two beneficiaries, etc.

Once you follow these steps, the Pension and annuity income exclusion will appear on line 29 on form IT201.

Edited 3/18/26, 10:09 AM PDT, @mring1515, @mring1515 

[mring1515]

Age doesn't matter with inherited. Is that a glitch in the system? I have several years returns that I now see that it was missed even though I always enter the information. I did fix it manually this year. 

[RogerD1]

You are correct that the New York pension exclusion is available to those under 59-1/2 in the instance of a decedent IRA distribution.  Following the steps I gave earlier to get the pension exclusion to appear on your New York state return should work.

The following information is from New York's information for seniors webpage:  "If you receive pension and annuity income of a deceased individual, you may take this subtraction (to the extent the distributions are included in your federal adjusted gross income), regardless of your age, if the deceased would have been entitled to it had the deceased continued to live. If the deceased individual would have become 59½ during the tax year, you may subtract from your federal adjusted gross income the amount of pension and annuity income received on or after the date that the deceased individual would have become 59½, but not more than $20,000. In addition, the amount of pension and annuity income exclusion attributable to the deceased individual that you are eligible to claim as a beneficiary for the tax year must first be reduced by the amount subtracted on the deceased individual’s New York State income tax return, if any, for the same tax year.

If the deceased individual has more than one beneficiary, the $20,000 maximum amount of the pension and annuity exclusion must be allocated among the beneficiaries. Each beneficiary’s share of the $20,000 exclusion is determined by multiplying $20,000 by a fraction whose numerator is the value of the pensions and annuities inherited by the beneficiary, and whose denominator is the total value inherited by all beneficiaries of the deceased individual’s pensions and annuities. The total exclusion of the deceased individual and all beneficiaries cannot exceed $20,000 annually."

[mring1515]

This year I caught that it was missing, even though I answered all the questions, and corrected it manually. Prior years however I didn't notice it and need to amend returns. Why is the program missing this even though I answer all the decedent information? I think this is something that needs to be corrected in the desktop system. I didn't have this issue with the online version many years ago.  Thank you for your help

[RogerD1]

The ability to take the pension exclusion for a New York beneficiary IRA distribution is present, but it's true that you do need to know where to look for it in order to claim it.

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[rkw1975]

Hello, I'm adding to this now month old thread, as I've been looking at this same issue.  In my case, this is the first year that I've had an inherited IRA. I find the questions to be really murky.  

In my situation, there were four beneficiaries with each of us getting a 1/4 share, in the form of 4 different inherited IRAs (one to each of us). My understand of this issue is that we are each entitled to a $5000 exclusion -- based on the overall value of the four IRA accounts combined. 

In the TurboTax section to make adjustments to Federal income for the inherited IRA, the series of questions asks for the total amount of the Decedent's pension. I don't have anything that documents the total value in the original account. I know that I got 25% but I don't have an official document that says that either. 

If I only complete the beneficiary % (25%) -- TurboTax auto-fills the value of the overall pension as 4x my withdrawal. However, the overall value of my Inherited IRA is much higher than that -- I only withdrew the required amount and will continue to do so over the next 10 years. And the value of all four IRAs combined would be even higher than that. 

If I let TT auto-compute the Total Value number, the end result is that the $5000 exclusion that I'm pretty certain I'm entitled to computes correctly. But if I set the Total Value as either the full value of my inherited IRA or the full value of the four accounts together.....the number is different. Am I missing something?