The error is adding in an additional $20,000 deduction for pensions. Pensions from former New York State employees is exempt from state tax. That's a given. Turbo Tax recognizes that. But it's the extra $20,000 that is causing problems. The $20,000 is for other pensions. Turbo Tax added new questions this year, like verifying amount of NYS pension and whether you are receiving periodic payments. New York State employee pensions are monthly. That's also a given. The periodic payments are a requirement to get the $20,000 reductions from non-NYS pensions. Somewhere, wires got crossed this year in the program that I'm hoping gets addressed soon.
