Retirement tax questions

Your 1099-R might say NYS EXEMPT if your 1099-R distribution is less than $20,000 and is a federal, NYS state or local government pension or IRA. 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. 

Please enter the information in the 1099-R entry form: 

• For Box 14 (State tax withheld), do not enter EXEMPT. Enter $0.
• For Box 15a (State), choose NY.
• For Box 15b (State number), enter as shown on Form 1099-R. 
• For Box 16 (State distribution), enter the distribution as shown in Box 1 (Gross distribution). 

If it is non-taxable in NYS based on the guidelines above, please follow the on-screen instructions and answer the questions pertaining to your 1099-R. In addition, please confirm it is being deducted out of your NYS income.

Please follow these steps in TurboTax to confirm:

1. Open your return.
2. Click on State in the left hand column.
3. Click Edit next to your resident return.
4. Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
5. Scroll down to Wage and retirement adjustments.
6. Click Start next to Received retirement income. 
7. Continue to the screen Governmental Pension Exclusion.
8. Enter $20,000 (or your distribution if less than that amount) 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? 
9. The next screen will show your pension deduction summary. Only $20,000 (or your distribution if less than that amount) should be deducted from your pension.