New York pension exclusion

Forum|Forum|5 years ago
February 1, 2021
1 reply
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I am a New York state retiree, so my pension is fully excluded in NY.

In past years using Turbo, the questions that were asked on the pension screen (NYSLRS retiree, qualified plan) prompted Turbo to carry it to NY as fully excluded.

The same questions are on 2020 Turbo, but it does not carry to the NY return and I notice a box on NY to input the amount of excluded pension, which I filled in (all of it).

On the return preview, NY subtractions show both the full pension exclusion AND $20K for a "regular" pension exclusion. I had to manually delete the $20K exclusion for the return to be correct.

Any suggestions from anyone on how I could have input this differently to alleviate this error?

Geez, ya gotta be well-versed in tax law to complete your own taxes!

Thank you!

GloriaL

Level 7

To ensure that your NYS pension is not being taxed on your NYS tax return you first need to be sure your pension in entered in the federal section properly.

Open your TurboTax.
In the Search box, type in 1099-R.
Click on Jump to 1099-R.
You will see your entry for your NYS pension.
Click on Review.
Click on Continue until you get to the screen Where Is This Distribution from? screen.
Select the source New York State & Local Retirement System.
Click on Continue.
Answer the follow up questions.
Click on Continue.

After reviewing your entries, you should see a subtraction on your NYS tax return for the amount of your NYS pension.

LSG1

Level 3

@GloriaLthank you, but you suggestion does not help.

I have the same problem. We enter the correct amount in the Where Is This Distribution from? screen. I put that the pension is a New York State and Local Retirement System (NYSLRS) and it takes both the full pension amount plus the $20,000 exclusion from the state taxes. The only way to fix this is the say it is a US Government pension, and then it takes the full amount, but does not take the $20,000. I actually had this same problem in 2019. The quesionaire is wrong, but then then the finalized Tax form is correct. If I just let it go, I'd be getting back way too much of a refund.