1099-R State Exempt Income

[carroll823]

I received early distribution from government retirement system. I received a 1099-R that I included in my federal return. Box 14, for state taxes, read as "EXEMPT" on my 1099-R. The field for the federal return requires a numerical value. How do I enter "EXEMPT" and how do I exclude this income from my state (New York) return if the state return pulls from the federal return, not allowing me to selected individual forms to edit?

Thanks!

[DoninGA]

Since there are no state income taxes withheld on the Form 1099-R, leave boxes 14, 15 and 16 blank (empty) when entering the Form 1099-R

[BillM223]

First, do not enter "EXEMPT" into TurboTax.

Second, I assume that you have indicated that your state of residence is New York State. If so, then in the screens after you enter the data for the 1099-R, you should see a screen similar to this (this is from the desktop product, the Online product may vary somewhat):

Please indicate the source of the pension, and if it is eligible, it will be removed from NYS income.