Thanks for responding! The issue at hand is that when the NYS pension income is entered in the Federal section (which is correct - let's say it is $45k as an example) and imported into the NY State portion of the software, it brings that number in as "Taxable NY State Income" and then subtracts it out again because NYS pension plans are not taxable at all in NYS. That's fine. The problem is that it also subtracts another $20k from the NYS income (because the pension income must again be entered when NYS pension income is requested in the State interview) which ends up deducting $65k from the overall NYS income instead of $45k which would be correct. When I checked the IT-201 form that was generated by this set of entries, one can see that the spurious $20k deduction shows up on a line that appears to apply to all non-NYS pensions. This is why I think the software is in error, and that having an entry in the NYS pension line (which triggers a subtraction of that same amount) also triggers the $20k deduction, resulting in a total deduction that is incorrect. I'm going to go back and carefully examine my entries based on your advice. If I can fix the problem, I'll post again.
