As a retired New York State employee, my pension is supposed to be tax free in New York State. My 1099R indicates exempt in the State ID and tax withled box ( box 14) , The TT instructions are to leave the taxable amount blank when the 1099 R says Exempt. I did that. On the NYS IT201, line 10 is where the amount of my pension is brought forth. Then later on line 26 the pension amount is supposed to be subtracted out. However my line 26 is not filled in thus overstating my NYS income and tax due. I have tried to correct this numerous times in the Wages and Dedutions area of the Federal part of the return but in several cases the state taxable amount in box 16 was loaded as if I typed in my pension amount. I even tried to delete the 1099 R income worksheet at the federal level and then typed in a new 1099R and it still does not subtract my pension at the NYS IT 201 line 26. I did look online to see if this was a tax department change but it looks like it has not been changed and the pension should still be NYS Tax free. Note. I am just talking about NYS tax free, not Federal tax free. I do pay federal taxes on the pension.
