The RMD is included in the Federal AGI, which transfers to
the state return. In the state interview, you will be asked for any qualified
deductions. This will be entered as a Pension and annuity income exclusion, on Line 29 of the NY form.
"
If you received a decedent’s pension and annuity income, you
may make this subtraction if the decedent would have been
entitled to it, had the decedent continued to live, regardless of
your age. .....The total pension
and annuity income exclusion claimed by the decedent and the
decedent’s beneficiaries cannot exceed $20,000." Reference page 19 at https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
