I sold a non-qualified annuity with New York Life and received a 1099-R. It was originally purchased with after tax dollars.
On NYS IT201 form, line 29 for Pension and annuity income exclusion, software is including the non-qualified annuity in the income exclusion, capping at 20,000.
I was always under the impression that only qualified retirement and pension related can be used in this income exclusion, so non-qualified annuity would not be included in this line?
if assumption is correct then there is a software defect in this area or perhaps there is a special way to 1099-R for non-qualified annuity that I'm not aware of.
Appreciate any feedbacks and clarification.
Thank you.
