How do I designate pension income fom a 1099-R as military pension income on the New York Tax return so it's not included as taxable income?

[stelmanr]

It looks like the Federal AGI is pulling into the New York form includes my military retirement income. New York exempts Military Retirement from taxable income but I don't find a way to do it.

[LenaH]

To exempt your military retirement income from NYS taxable income, please follow the instructions below:

1. Open your return.
2. Navigate to the 1099-R section.
   • TurboTax Online/Mobile: Go to 1099-R.
   • TurboTax Desktop: Select Search Topics. Search for and select 1099-R.
3. Click Edit next to your 1099-R.
4. Continue until you reach the page, Where is your distribution from? Please ensure it is marked U.S. Government (including military). Click Continue. 
5. Open your NYS return.
6. On the page, Changes to Federal Income, scroll down to Received retirement income. Click Start.
7. Continue through the pages.
8. On the screen, Pension Deduction Summary, you should see your NYS deduction for government pensions is fully deducted. 

[SteamTrain]

Correct:

You MUST edit the 1099-R in the Federal section, and indicate on a follow-up page that it was a Military pension  (see picture below from 2021 software...selections might have changed some...BUT, you'd use the top bullet point in this example)

ALSO, the state distribution amount MUST be set to the box 2a value, even if it's empty on your actual 1099-R.  The state forms then use the box 16 value to know how much of Federal income to subtract....and will do so somewhere in the state forms

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[stelmanr]

I don't get a page titled Where is your distribution from?  The only page that mentions a military retirement plan is What kind of retirement plan do you have with Defense Finance and Accounting Service?  On that page I've designated the 1099-R as a Non-qualified plan.

[stelmanr]

This page does not exist. Based on the screenshot side panel, it looks like from an older version of TT (2021) while I'm preparing 2024.