howiereiss
Returning Member

State tax filing

Thank you but the outcome is still incorrect. Using your solution, Using your solution, TT did exclude the taxable portion of my government pension on the NY return.  Line 10 (taxable pension amount ) and line 26 (the NY subtraction amount) are now equal, as they should be, since both my wife's and my pension are exempt from NYS/NYC tax.

 

However, it also left the $20,000 pension and annuity income exclusion on line 29.  That shouldn't be.  $20k is the maximum pension exclusion for "non NYS/NYC tax exempt government pensions".

 

In past years, just checking the box (either NYSLRS or NYS or City Education) exempted the pension from NYS/NYC tax. Why does it differ this year? My wife's NYC education pension was automatically exempted, but my NYC pension required the extra step of going to Changes to Federal Income.

 

I think the programmers should revisit this. My wife and I actually have no NYS/NYC tax liability because both of our pensions are tax exempt, but others are not so lucky.  The $20k exclusion should not be "in addition to" a wholly tax exempt government pension.