Yes, 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.
In addition, NY allows a $20,000 exemption if you are over the age of 59 ½ or turn 59 ½ during the tax year, you may qualify for a pension and annuity exclusion of up to $20,000. See Information for retired persons - Department of Taxation and ...for full details.
Please go back to the federal section.
- Scroll down to retirement
- Edit your 1099R.
- Be sure to answer all the questions. Double check, safety officer, which state
- There are many including, Where is this Distribution From,
- click on NY State and Local (the second box)
- Select From a Qualified Plan
- What did you do, cashed it
- Periodic Payments
- Select Yes
- keep going
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In 2019, my NYS pension from NYSLRS was a subtraction of income on the NYS taxes. I performed all the actions as noted in the AQ Q&A, yet it still is not subtracted. What changed in NYS or if it is still a subtraction how do I get TuarboTax to recognize it as a subtraction .
To get the exclusion to work correctly, select US Government (Including Military) instead of New York State and Local Retirement System (NYSLRS).
This approach has been used, with success, by others experiencing the same issue.
Actually, the CORRECT "fix" until the error is corrected is
go to view
scroll down to new york individual
double click on Pen Ann IRA wks
If the NY pension is your only pension and your filing status is Single, check the government pension box. This will enter your pension on line 26
Persons filing Joint or who also have other pensions like an IRA in addition to a NYS Pension, scroll to page 2 of the worksheet, check the box on line 1c (if a joint return, check the box if both columns), enter the amount the ny pension on line 2b. If you also have an IRA which is less than 20,000 scroll to the bottom, right click on the 20,000, select override and type in the correct amt. Example if the IRA is 15,000 type in 15,000 as the override amt. Because the override is on the worksheet and not on the tax form e-filing WILL BE allowed by the software.
I had the exact same issue filing my parent's tax return. I found the following message on a different thread.
New York customers are currently experiencing an issue in TurboTax causing their New York pension exclusion to be incorrectly calculated.
We expect this issue to be resolved by 02/19/21. If you’d like to receive progress status updates, please sign up here.