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Retirement tax questions
Yes, you are correct. Just make sure that you are letting the TurboTax system know this is a government pension.
You will be able to select that it is a government pension related to NY under the 1099-R section once you have entered your information (See Screenshot). Just make sure to enter the total amount as NY distributed amount.
Then when you are in the NY state section, the pension should flow as exempt automatically.
According to the NY Department of Revenue -
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
In addition, income from pension plans described in section 114 of Title 4 of the U.S. code received while you are a nonresident of New York State is not taxable to New York.
If your pension is taxable to New York and you are over the age of 59 ½ or turn 59 ½ during the tax year, you may qualify for a pension and annuity exclusion of up to $20,000. This exclusion from New York State taxable income applies to pension and annuity income included in your federal adjusted gross income. For more information on the pension exclusions and other benefits for retired people, see Publication 36, General Information for Senior Citizens and Retired Persons.