My 1099-R is state tax exempt and is reflected in Box 14 as "Exempt." How do I enter this in Turbo Tax? I'm only allowed to enter numbers.

[emuvenus]

This is for New York state.

[DianeW777]

It depends.  There is no need to enter the word exempt in Box 14, however for the state section of the 1099-R do not enter any information.  When you get to the New York (NY) state return, watch for the area where you can remove the exempt pension.

• NY FAQs about Pension Subtraction Adjustments

Q: What determines if an individual’s pension or annuity qualifies for the $20,000 pension and annuity  exclusion on the NYS personal income tax return? 

A: The individual receiving the pension must be 59½ years of age or over. In addition, the pension and  annuity income must be:  

 • included in federal adjusted gross income (FAGI);   

• received in periodic payments (except IRA or Keogh);   

• attributable to personal services performed by the individual before their retirement; and   

• from an employer-employee relationship or from an employee’s tax deductible contributions to a retirement plan.