New York State Pension Exclusion
My mother-in-law passed away in February 2022. She was born in 1936. She had an IRA worth $467,950.00, of which my wife and her brother each received 50% ($233,975.00), transferred into an inherited IRA. My wife took a distribution of $23,655 (part of which was the required RMD my mother-in-law would have had to take for 2022). I believe that my wife would be entitled to a $10,000 NY State exclusion - 50% of the exclusion my mother-in-law would have been entitled to. However, after asking for Decedent's Date of Birth (1936), Total Amount of Decedent's Pension or IRA ($467,950), Exclusion Claimed on Decedent's Return (0), and Percentage Share of Total Distribution (50%), Turbotax shows a NY deduction of only $1,011.00. Is that correct, or is there some bug in Turbotax? Thanks.
