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New Member
posted Apr 14, 2021 6:14:18 AM

As a Fed retiree how do I show that distributions from my TSP account are Federally taxable but State (NY) tax free?

I assume I will receive Federal and State 1099s as the TSP makes no opinion on whether withdrawals will be taxed "Stately."

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2 Replies
Expert Alumni
Apr 14, 2021 7:59:24 AM

No, you will get one 1099R for the TSP account distribution.  When you enter that form information into TurboTax you will arrive at a page asking "Where is this distribution from?"  One of the options is "US Government."  You will select that option and your NY state interview will be adjusted.  

 

In the NY state interview in the "Wage and Adjustment" section you can "Start/update" the "Received retirement income" topic.  Eventually you will arrive at a page titled "NY Pension Adjustments".  That page will show you the total federal taxable pension and the NY subtraction for the pension.  

 

 

Level 1
Apr 17, 2021 5:07:30 AM

That's a great answer Mark, and thanks...now to continue this train of thought, ostensibly it seems that one could transfer pre tax monies from the Federal TSP to say a Vanguard ROTH account and although this taxable even would trigger Federal taxes there would be no state taxes from NY State.  Almost seems like a free lunch.

Just kiddin' Mark, and again, thanks for that great answer.