In the TurboTax software, please make sure that you pick the correct classification in the software if your 1099-R is fully exempt.
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
Please follow these steps and make sure all the required fields are completed:
- Open your return.
- Search 1099-R with the magnifying glass tool.
- Select the Jump-to link at the top of the search results.
- Enter the information as shown on your 1099-R.
- Answer the questions on the next two screens.
- Make sure the correct source of your 1099-R is selected.
- Click on From a qualified plan on the screen Was this distribution from a qualified plan?
- Answer the required minimum distribution questions on the next screen.
- Finish answering the questions about your 1099-R.
- Once you are back to your federal 1099-R summary screen, click on the State on the left hand side.
- Click on Continue for New York.
- Click Start next to Received Retirement Income on the screen Changes to Federal Income
- Click Edit next to your 1099-R.
- On the page Pension Deduction Summary, you will see New York deduction for government pensions for the full amount.