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liz-788
New Member

I receive a nys pension and when starting my nys tax return TurboTax 2021 taxed my pension less 20k. The entire pension should not be taxable by nys?

I checked with the nys retirement system and the pension amount is not taxed in nys. I lived in Nys the entire year.
1 Reply
LenaH
Expert Alumni

I receive a nys pension and when starting my nys tax return TurboTax 2021 taxed my pension less 20k. The entire pension should not be taxable by nys?

After the input of your 1099-R on the federal screen, you must select the source of your pension correctly. If your pension is from New York State, the first category should be selected. 

 

Your pension income is not taxable in New York State when it is paid by:

  • New York State or local government
  • the federal government, including Social Security benefits
  • Certain public authorities

 

 

To review your 1099-R and get it classified as exempt, please follow the instructions below:

  1. Open your return.
  2. Search 1099-R in the search box.
  3. Click the Jump to 1099-R  on the top of the search results. 
  4. Add a 1099-R if you haven't already or click Edit next to the 1099-R you want to correct.
  5. Enter the information as shown on your 1099-R. 
  6. Answer the questions on the next screens.
  7. Make sure the correct source of your 1099-R is selected. 
  8. Answer the on-screen instructions. 
  9. Once complete, click on State on the left-hand side. 
  10. Edit your resident return.
  11. Continue until you get to the page You Just Finished Your New York Return.
  12. Click on Start or Update to Adjustments to Federal Income under Changes to Federal Income
  13. Click on Received Retirement Income under Wage and retirement adjustments.
  14. Follow the on-screen instructions. 
  15. Your deduction should show as zero amount taxable to NYS on the Pension Deduction Summary page. Please see the screenshot below. 

 

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