The adjustment to exclude $20,000 from your NYS income is done under Wage and retirement adjustments. This is found on the NYS screen Changes to Federal Income. I tested this process with a mock return I created in TurboTax Online and the update now appears complete.
You can follow these steps in TurboTax to exclude $20,000 of your retirement income:
- Open your return.
- Click on State in the left hand column.
- Click Edit next to your resident return.
- Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
- Scroll down to Wage and retirement adjustments.
- Click Start next to Received retirement income.
- Continue to the screen Governmental Pension Exclusion.
- Enter $20,000 for the question, Did you receive a pension or other distribution from a NY State or local government pension plan or federal government pension plan?
- The next screen will show your pension deduction summary. Only $20,000 should be deducted from your pension.
Per NYS, taxpayers over age 59 1/2 can deduct up to $20,000 of certain federal, NY state or local government pensions and certain IRAs on their New York return. If married filing jointly, each spouse may deduct up to $20,000.
@JoeHay
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