Thanks for your reply!
Unfortunately, the TurboTax software isn't carrying forward that exclusion onto her NYS return. I tried to enter it as follows in the State section of her return:
-Changes to Federal Income
-Wage and Retirement adjustments
-Received Retirement Income
(At that point the IRA RMD amount carried over from the federal side, and I clicked Edit, as instructed)
- In response to Did you receive this as a Beneficiary - chose Yes
-Entered the requested decedent info, including her inherited percentage share (33.33%)
At that point, a "Pension Deduction Summary" screen came up, showing the total Federal taxable distribution (about $10K), but the amount of the deduction listed in "NY Deduction for other pensions" was only $280.
If the exclusion applies, then (if I understand it correctly), she should be able to exclude 33.33% of the total $20,000 permitted exclusion, or $6,666, from her AGI.
The agent that I spoke to did the same process - and couldn't understand it either. Finally the agent said it's because the decedent was not a NY resident - but nowhere did the software ask that (nor do I think it's a correct interpretation of the rule).
Am I doing this incorrectly? If not, any suggestions as to how to make TurboTax include that deduction?
I really appreciate your help!
