NYC pension payments

[maskrunner2]

I retired in Dec. 2018 from NYC fire.  I did 30 years.

Normal service retirement.  My pension statements are broken down into 3 different categories.

Pension, Additional 1/60's, and ITHP after 20 years.  I know what each of these categories mean, however I was told that only the "Pension" part is exempt from NY state tax ( Police, fire) The other 2 parts still have to be reported as income. I have looked at NY state tax publications for retirement income( it-255) (201) and they only say public service " pensions" are exempt. No mention of these Other pay categoties.

Do I have to separate the pension portion from the others, for NY taxes ?  Since I pay federal tax on the money, the total amount is entered into Turbo Tax, however it is transferring over to my State return as completely taxable and I know for a fact that my "pension" portion is not taxable. But do the other parts have to be added back in for state taxes or is the entire payment exempt from NY state tax?

1099-R is entered as taxable on the federal side

[DianeC958]

The pension amount you received from New York is exempt from state tax.  The other payments are not. 

As you put the information into the Federal part of TurboTax for the 1099R it asks if you received this from working as an Employment Safety Officer.   Answer this question yes. Answer the question on the next screen about Did the Pension Administrator Pay for Health Insurance.  

Next question Where is this Distribution From? Choose the second option and in the box below for the New York Distribution amount put the pension amount.  This then flows to your New York return and is not taxable.

Link to instructions for form IT-255

[maskrunner2]

Hi,  I did exactly what you said. However on the NY return, it is still exempting the whole amount under the subtractions part of the return. Can this be a software problem??

[iSKOMO]

I am having the same or similar issue.  The amount reported on my pension is not being subtracted from the NYS tax which then tells me I owe NYS.  I can see that my previous year (2018) it was being subtracted.  I've not had any problems in the past years of having the 1099-R applied correctly to the state tax forms before.

[iSKOMO]

deleted.  info added to above post.