NY does have a $20,000 exclusion but it is per decedent. Since you inherited the money, you have to mark what percentage of the money is your share of the decedents total. Let me give you an example. You and a sibling could have inherited all the money. Then your share is 50% of the income and 50% of the $20,000 exclusion. NY can't let everybody get the full amount or they would be losing money.
You have to tell the program your share. Please follow the steps I created with screenshots here.
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