I have a 1099-R from NYS Teacher's Retirement system. I know my pension is exempt from NYS taxes, but it is not showing up that way when the software handles it. Help!

[IsabellaG · Accepted solution]

When you enter your 1099-R for your pension income in the Federal section of TurboTax, you will reach a screen Where Is This Distribution From?

If you check that your pension is from the NY State and City Education, when you start your NY State return, that income will be excluded from tax. See the screenshot below.

[pengamo69]

I had to file an amendment for my NYS Tax Return in 2014 since Turbotax does not handle income from NYC Teacher's Retiremente Stystem as non taxable (no matter how boxes you check). It is, instead, handled as taxable income and a $20,000 exclusion is applied.

This is how a have fixed it in the years that followed: go to your IT-203 (page 2) line 25-Pensions of New York State and local governments and the federal government. Manually enter your pension income. If you see $20,000 on line 28 (Pension and annuity income exclusion) enter zero. That will do it.

[pengamo69]

I had to file an amendment for my NYS Tax Return in 2014 since Turbotax does not handle income from NYC Teacher's Retiremente Stystem as non taxable (no matter how boxes you check). It is, instead, handled as taxable income and a $20,000 exclusion is applied.

This is how a have fixed it in the years that followed: go to your IT-203 (page 2) line 25-Pensions of New York State and local governments and the federal government. Manually enter your pension income. If you see $20,000 on line 28 (Pension and annuity income exclusion) enter zero. That will do it.