Retirement tax questions

In the TurboTax software, please make sure that you picked the correct classification in the software if your 1099-R is fully exempt. 

Your pension income is not taxable in New York State when it is paid by:

• New York State or local government
• the federal government, including Social Security benefits
• Certain public authorities

Please follow these steps and make sure all the required fields are completed:

1. Open your return.
2. Search 1099-R with the magnifying glass tool. 
3. Click Edit next to the 1099-R you want to correct.
4. Enter the information as shown on your 1099-R. 
5. Answer the questions on the next two screens.
6. Make sure the correct source of your 1099-R is selected.
7. Click on From a qualified plan on the screen Was this distribution from a qualified plan?
8. Answer the required minimum distribution questions on the next screen.
9. Finish answering the questions about your 1099-R.
10. Once you are back to your federal 1099-R summary screen, click on the StateTaxes tab above.
11. Click on Edit for New York.
12. Click Start next to Received Retirement Income on the screen Changes to Federal Income
13. Click Edit next to your 1099-R.
14. On the page Pension Deduction Summary, you will see New York deduction for government pensions for the full amount (see below).

Lastly, all Social Security retirement benefits are exempt from NYS taxation.