I am a new York state resident and my state pension should not be taxed on my state return and yet Turbo Tax shows it as taxed. Any thoughts?

[jodonne5]

Thank you JoeZ.  I think we all knew it was a software error in their system. I am just so surprised it took them to give an answer to someone. Frustrating. Now I just hope it does get corrected and resolved on the 18th or soon thereafter. Thanks again for posting this to this thread. 

[peterdaly46]

 for rmd's your statement is true but not for a New Yotk State pension

[peterdaly46]

it did not work

[peterdaly46]

if you select the federal exemption it knows that the dollar amount should be deducted. until they fix this use can use the  amount to plan

[aefkovarik]

My NYS pension should be in the NYS subtractions but is not.  there is a $20000 amount and my husband's pension but not mine.  Why not?

[ReneeM7122]

When entering your Form 1099-R for your New York State pension,  you want to make sure that Turbo Tax isn't handling it as taxable income. 

To get the New York state pension deduction, you will first have to enter the necessary information in your Federal Income tax return and then in the New York State income tax return.

Here are the steps to enter your exempt New York State employee pension:

On the  Federal Income Tax  portion:

1. In the search or find box, type in 1099-R
2. Click on Jump to 1099-R
3. Scroll down to Retirement Plans and Social Security
4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
5. Enter your 1099-R or if you have entered it, click on Edit then Continue
6. Answer the next questions until you get to the Where Is This Distribution From? screen
7. Select the source New York State Employees and enter the information requested:
8. Click on Continue
9. Click on From a Qualified Plan
10. Continue answering the questions

On the New York State return portion: 

1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
2. At the Retirement Distributions Summary page, click on Edit New York State
3. If no additional information is required, click on Continue
4. Click on Done

Review the Pension Deduction Summary for the deduction.

Here's a TurboTax article about tax tips for retirement, including taxable and nontaxable pensions.

Keep in mind, the portion where Turbo Tax asks to verify the Government Pension Exclusion.  Turbo Tax populates with the higher, total co-amount of the pension, not the slightly lower taxable amount.  When corrected, the total New York Taxable amount should be zero.

@aefkovarik

[norbl]

Now it's 2022 and still the same problem.  My NY pension is not taxable and yet I cannot correct this issue on my NY tax return no matter what I try.  This has been noted repeatedly.  Very poor.

[BillM223]

Please tell us the following:

1. Are you filing a resident return for New York?

2. What type of pension are we talking about? "NY pension" is not precise enough.

3. Is the taxable amount different than the gross distribution on the 1099-R (i.e., box 2a versus box 1)? If so what are they?

4. Is there an amount in box 16 of your 1099-R?

5. When you entered your 1099-R for this pension, in the screens afterwards where TurboTax asks you where this Distribution is from, what did you answer?

6. In the New York interview, on the screen "Changes to Federal Income", did you click on "Received Retirement Income" under Wage and retirement adjustments?

7. If so, did you edit your pension? Or did you get the message "We don't need any further information..."?

8. Are you using the CD/download product, and so can see your IT-201 pages 1-2?

9. If not, how do you know your pension is being taxed?

Unfortunately, since we in the Community cannot see your screen or your private tax data, when we have these situations in which our (admittedly simple) tests do not match your apparent results, we have to ask a lot of detailed questions.

[user7201954]

Your #7 is correct.  I used "Other pensions of NYS and Local Governments" and immediately corrected.