My NY State pension is not taxed by NY State. How can I make sure in Turbo Tax that it is not being counted as taxable income?

[SandraM]

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:

1. In the search or find box, type in 1099-R
2. Click on Jump to 1099-R
3. Scroll down to Retirement Plans and Social Security
4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
5. Enter your 1099-R or if you have entered it, click on Edit then Continue
6. Answer the next questions until you get to the Where Is This Distribution From? screen
7. Select the source New York State Employees and enter the information requested:
8. Click on Continue
9. Click on From a Qualified Plan
10. Continue answering the questions

On the New York State return portion: 

1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
2. At the Retirement Distributions Summary page, click on Edit New York State
3. If no additional information is required, click on Continue
4. Click on Done

Review the Pension Deduction Summary for the deduction

[tituskao]

Thanks for posting this.  For TurboTax Premier, the steps were slightly different.  However, I was able to figure it out with the steps you provided.  Thank you!

[ConwayP]

I receive a UN pension, as a NY state resident who is over 59 1/2, up to $20,000 of that pension is deductible.  The UN does not issue a 1099R's.  Else in the forum it says to enter it as "Other Income" on my Federal returns, which I did, but working on the state return I can not deduct this pension from my AGI.  How do I fix this?

[geowarner]

SandraM:

Thanks for the post.  This is my 1st yr in retirement & sorting out how to not be taxed on my retirement income was not  working.  With these steps, there was a $5K swing in secords, from owing to a refund.

Turbotax, there was no real instruction/guidance on how to do this.  I get that this is a very small percent of users w/this situation.  That being said, you could have done much, much better.

[Jordan Mike]

Sandra

This is a pension not a withdrawals

[ReneeM7122]

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:

1. In the search or find box, type in 1099-R
2. Click on Jump to 1099-R
3. Scroll down to Retirement Plans and Social Security
4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
5. Enter your 1099-R or if you have entered it, click on Edit then Continue
6. Answer the next questions until you get to the Where Is This Distribution From? screen
7. Select the source New York State Employees and enter the information requested:
8. Click on Continue
9. Click on From a Qualified Plan
10. Continue answering the questions

On the New York State return portion: 

1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
2. At the Retirement Distributions Summary page, click on Edit New York State
3. If no additional information is required, click on Continue
4. Click on Done

Review the Pension Deduction Summary for the deduction.

Here's a TurboTax article about tax tips for retirement, including taxable and nontaxable pensions.

@Jordan Mike

[rverteramo]

Perfect instructions thanks so much!!