NYS Retirement

[lbilletts]

I was under the assumption that my NYS retirement is not NYS taxable yet it is not being deducted from the amount taxed by NY. Am I missing something? This is my first year filing my retirement. 

Thank you

[ThomasM125 · Accepted solution]

Your NYS retirement pension benefits are not taxable if you are 65 years old or older. When you enter your W-2 form in TurboTax, you need to indicate that you have New York government pension. You will see this form and must choose one of the options:

[Donniemac · Accepted solution]

TurboTax is having issues with the New York State retirement exclusion. They have issued the following statement. "New York customers are currently experiencing an issue in TurboTax causing their New York pension exclusions to be incorrectly calculated. We expect this issue to be resolved by 02/19/21."

[lbilletts]

Thank you

[Marcia7]

We are retired Teachers receiving a pension from New York State. Our income tax for the state was rejected. Perhaps I coded it inaccurately?

[Irene2805]

What was the reject message?

Please heck your entries and wait until tomorrow to e-file again.

@Marcia7

[Marcia7]

The message said our state return was rejected 

[mmalinos]

Same result here.  My retirement is from the NYS Employee Retirement System.  NYS rejected our return.  I will wait until tomorrow (2/20) and re-file unless there are updates coming indicating the problem has not been resolved.

[Donniemac]

TurboTax has issued a New York State update that fixes this issue.  You will need to go into your return and fix the retirement system issue.

GO TO

- FEDERAL TAXES

- Wages & Income

- IRA, 401(k), Pension Plan...  (UPDATE)

- Edit - NYS & Local Employees Retirement System

- Continue until you get to "Where is this distribution from?"

You will notice that NYSLRS is no longer listed as an option

TurboTax most likely changed your selection to US Government (Including Military)

Select "Other Pensions of New York State and Local Governments"

Answer the remaining question and then go through New York State again to check for errors

I hope this helps.

@mmalinos @lbilletts @Marcia7 @Irene2805 @ThomasM125 

[mmalinos]

I just opened up Turbo Tax and no updates were provided.  I went into my return as instructed and it continues to default to US Government (Including Military) at the distribution screen after I performed the NYS check/review.

I even clicked on "Check for Updates" under Turbo Tax.  I'm using the downloaded version.

[Donniemac]

Is your version of TurboTax still showing NYSLRS as an option? If not, check the Other Pensions of New York State and Local Government and continue. For some reason it always reverts to the US Government option if you go back. You can double check by clicking on the Forms tab in the upper right hand corner scroll down to New York Form IT-201 Page1-2, Line 26 should show your New York State pension amount. If it is blank then it will probably get rejected again. If it has your full retirement amount listed you should be good to go. 

Good Luck!

@mmalinos 

[mmalinos]

Thanks for your attention to this.  My version of Turbo Tax does not show the NYSLRS as an option.  As you suggested, I went to forms and on New York Form IT-201 Page 1-2, Line 26 and it does show the exclusion amount.

I did everything per your instructions but when I printed my return just prior to submission to NYS, on Form NYIW7801.SCR 02/12/21, Other Tax Credits and Taxes Worksheet, Part 1 - Calculations of Taxable Income Amounts, the Box for Qualifies for government exclusion is NOT checked.  Looking back at my 2019 submission, this box is checked.  I fear I will get another rejection.

[mmalinos]

Please disregard my last post.  I will wait to see if the return is accepted and let you know.

Thank you!

[Donniemac]

It seems like that might be the worksheet for your original tax return since it has the 02/12/21 date. You can easily check you new return by clicking the Forms button and going to NY Forms, Pen Ann IRA Wks. The Qualifies for government exclusion box should now be checked.

Good Luck.

@mmalinos 

[mmalinos]

UPDATE:  All good, NYS accepted our revised return.  My thanks to everyone for their assistance and to Turbo Tax for their software fix.