Lena,
New York State pensions are exempt from taxes in their entirety in the State of New York, period!
The issue with TurboTax online application its not following the instructions for the NY form IT-201.
The following is from Form IT-201
Line 10 - Taxable amount of pensions and annuities. If received as a beneficiary, mark an X in the box. $xx,xxx (represents the entire NY pension amount).
Line 29 - Pension and annuity income exclusion (see page 19) = $0.0
When we enter our NYS pension on line 10, Line 29 = $0.0 (see above). The issue with TurboTax is the application is entering $20,000 on line 29 even though we are entering our New York pension on line10.
See the following excerpt from instructions for IT-201.
Line 29 – Pension and annuity income exclusion
Did you enter an amount on line 9 or 10 that was not from a NYS
or local government pension plan or federal government pension
plan? If No, go to line 30.
TurboTax has lost many New York customers due to this issue. I suggest you it gets corrected ASAP.
