Just by way of a follow-up to this issue - my last post was wrong. Although the software applied part of the exclusion ($3,499) I could not get the total permitted exclusion ($6,667) to flow to the state return. I finally stopped trying to get TurboTax to correct it, and instead I manually prepared a NYS return with the exclusion (using New York's fillable forms) and filed it. I just received my refund today - instead of owing $335, which was how TurboTax calculated it, I received a refund of $276.
I now realize that I should have received this pension and annuity income exclusion during each of the last four years that I used TurboTax. It would have made a really significant difference to my NY taxes due!
This is the first year that I have paid for TurboTax (I used their FreeFile option in previous years), but I want a refund from TurboTax for what I paid for the state tax return this year, given that it was wrong in the first place (the software doesn't correctly apply the exclusion), and that when I called the support line, I was given incorrect advice (I was told that the exclusion doesn't apply by the TurboTax rep, which was contradicted by the NYS representative I spoke to later, who confirmed that the exclusion does apply).
Any suggestions on how I can pursue that refund from TurboTax? I shouldn't have to pay for a return that was wrong and that I didn't file!
