How can I make TurboTax Home and Business 2017 fill out the $20,000 pension and annuity income exclusion on line 29 of New York state form IT-201?

[markfrombrooklyn]

  I have an Inherited IRA, my wife has a regular IRA distribution, both around $7000.   Applies the pension exclusion to my wife'e IRA distribution but not to my Inherited IRA distribution.  I can fix it with override, but don't understand why I should need to do so.  I also have a pension that is excluded from NY State because it is a government pension, but that does not use up the $20,000 pension exclusion. Thank you

[SweetieJean]

2017?

[markfrombrooklyn]

My mistake. I meant 2018 Tax year.  But thank you for making sure.

[SweetieJean · Accepted solution]

New York permits a beneficiary to claim the same pension exclusion if the deceased owner would be eligible to claim the exclusion had he or she lived. Thus, the controlling issue is the age of the owner, and not the beneficiary. See, for example, New York State Department of Taxation and Finance Publication 36, “General Information for Senior Citizens and Retired Persons,” March 2015, pp. 14-16.

Also see Inherited IRAs and State Income Tax here:

https://sfmagazine.com/post-entry/july-2016-inherited-iras-and-state-income-tax/

[markfrombrooklyn]

Thank you.  I was aware of this, but TurboTax seemed to be ignoring the rule as the deceased owner was born in 1924.  However, thanks to your comment I rechecked my entries and I had incorrectly entered the decedents date of death in the NYState section of TurboTax instead of the date of birth.  I corrected that entry and TurboTax is now applying the deduction. I don't like using overrides.  Problem solved.

[markfrombrooklyn]

I treated my early out CSRS pension as a qualified government pension and have had no trouble with IRS or New York State. I suspect that FERS pension would be the same.