How do I override a New York deduction for pensions of $20,000 to zero? The pension is already being 100% deducted on the New York deduction for government pensions.

[tyabut07]

But Turbotax is automatically deducting the $20,000 on the New York deduction for pensions line even though it relates to the New York deduction for government pensions line.

[JoeHay--]

As of January 1, 2020,  I have the same problem with Turbo Tax 2020.

[JoeHay--]

This started working for me around January 14, 2021.   Unfortunately, I do not know what fixed the problem, I assumed it was one of the automatic software updates.  But since then I have seen posts of others with this same error.   I am using TurboTax Delux on my windows computer.

[WendyN2]

Yes, it is due to forms updates and therefore software updates that if you are attempting to file early you would be experiencing this. The IRS is beginning to accept returns for processing February 12th, 2021 for 2020 tax year. These are for 1040 returns with the "typical" schedules. Some are still being finalized, therefore you might still not be able to complete based on all of the schedules you might require.

[JoeHay--]

It seem from posts that this is still occurring for some users.  If there is a fix please tell us when and how someone could confirm if they have the fix.  This is a software bug and not just the result of IRS/NY form updates.

[LenaH]

The adjustment to exclude $20,000 from your NYS income is done under Wage and retirement adjustments. This is found on the NYS screen Changes to Federal Income. I tested this process with a mock return I created in TurboTax Online and the update now appears complete. 

You can follow these steps in TurboTax to exclude $20,000 of your retirement income:

1. Open your return.
2. Click on State in the left hand column.
3. Click Edit next to your resident return.
4. Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
5. Scroll down to Wage and retirement adjustments.
6. Click Start next to Received retirement income. 
7. Continue to the screen Governmental Pension Exclusion.
8. Enter $20,000 for the question, Did you receive a pension or other distribution from a NY State or local government pension plan or federal government pension plan? 
9. The next screen will show your pension deduction summary. Only $20,000 should be deducted from your pension.

Per NYS, taxpayers over age 59 1/2 can deduct up to $20,000 of certain federal, NY state or local government pensions and certain IRAs on their New York return. If married filing jointly, each spouse may deduct up to $20,000. 

@JoeHay

[JoeHay--]

Hi LenaH,

I do not know all of the specifics but my pension from a bank I worked for is granted a $20k New York State exclusion.  My spouse retired from a local school district and her pension from New York State Teachers Retirement System is 100% excluded.  TurboTax was giving my spouse both exclusions, 20k plus her entire pension amount.  She should not get the 20k exclusion.  This is a software bug.

For reasons unknown to me this is now working correctly for me. I am getting the 20k exclusion and my spouse is getting an exclusion for the full amount of her government pension.  My spouse is no longer getting an additional 20k.   But other users are reporting that they still have this problem of getting both exclusions.

I am using TurboTax Deluxe 2020 for Windows.  I always accept the updates that Intuit pushes out.