Are social security benefits taxable on NY returns? My confusion is I found a NY tax Dept web page stating they are not, yet TurboTax does not automatically calculate 0.

[Cindy0H · Accepted solution]

You are correct. Taxable social security benefits (as well as Tier 1 railroad retirement benefits) included in your federal adjusted gross income are exempt from state and local income taxes. In the New York Form IT201, the taxable social security benefits are a subtraction on line 27. For example if you received $23,000 in Social Security Benefits and on your federal 1040 (line 5b), $19,500 was taxable, that same amount ($19,500) would be subtracted on the New York Form IT201 line 27 after it had been added on to the income on line 15. So it is a wash. The untaxable part of  Social Security is not on the New York return.

[VolvoGirl]

Or maybe none of your ss was taxable on federal either.  So there is nothing to deduct on state.  Check your 1040 line 5b.

[EdASRQ]

TurboTaxCindyH - Thank you for confirming. I appreciate it.