When you enter that you are a New York state resident, after you enter your 1099-R for your pension, there will be a series of screens. One screen will ask you to Select Your State.
When you select New York, the next screen will ask "Where is this distribution from?"
This will give you the opportunity to select the source of the pension. If you have a pension that qualifies for exclusion in New York, it will be removed from your New York return.
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When entering your Form 1099-R for your New York State pension, you want to make sure that Turbo Tax isn't handling it as taxable income.
To get the New York state pension deduction, you will first have to enter the necessary information in your Federal Income tax return and then in the New York State income tax return.
Here are the steps to enter your exempt New York State employee pension:
On the Federal Income Tax portion:
- In the search or find box, type in 1099-R
- Click on Jump to 1099-R
- Scroll down to Retirement Plans and Social Security
- At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
- Enter your 1099-R or if you have entered it, click on Edit then Continue
- Answer the next questions until you get to the Where Is This Distribution From? screen
- Select the source New York State Employees and enter the information requested:
- Click on Continue
- Click on From a Qualified Plan
- Continue answering the questions
On the New York State return portion:
- At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
- At the Retirement Distributions Summary page, click on Edit New York State
- If no additional information is required, click on Continue
- Click on Done
Review the Pension Deduction Summary for the deduction.