My wife and I are both retired. I have a pension from the NYS Police and Fire, it is state tax exempt. We are both collecting Social Security, which supposedly New York does not tax. Neither of us has any other income for 2022. We also withdrew $19,511.00 combined from my deferred comp and my wife's 401k. When I plugged in my numbers in Turbotax it said we have a huge ($3986.00) tax debt to NYS and owe an underpayment penalty. How can this be when most if not all our income is supposedly not taxed by NYS. Did I possibly enter information incorrectly? I was also told that NYS does not tax withdrawals from 457 and 401k plans if the amount is under $20,000. Any advice would be greatly appreciated.
