The program does have a screen that is designed to trigger this NY state exclusion. Try following these steps:
- Click on the search magnifying glass at the top right corner. Type in Form 1099-R
- Click on Jump to 1099R in the search results of Go to 1099-R.
- Go through the screens associated with the teachers' pension 1099-R again.
- Find a screen labeled "Where is this distribution from?"
- Click the radio button for the appropriate source
- New York State and City Education or
- New York State and City Education (optional retirement plan)
- Make sure the state distribution amounts have been entered.
What doesn't work? The screen doesn't appear or when you check the button, that the pension is not removed?
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When you click on New York State or City Education it increased the Tax Due for NY State (as opposed to the US Government option) As NY Education Pensions are supposed to be NY State Tax-free and have been for the last 10 years I've been doing my moms return it seems there is something wrong with the program this year.
Did I miss something? Your directions were right but the calculation that the program does is wrong.