New York State Retiree 1099-R Can't enter info into Turbo Tax

[grandpaknei]

For a moment I had hope.  But no, putting 0 in box 16 and leaving 14 blank did not get past the turbotax bug.  With numerous experiments,  I have proven that turbotax thinks that 0 is not less than 0 , that 0 is not less than 0.01, that 0 is not less than $35,000.00.  I believe TurboTax's online directions have not changed regarding NYS pensions in that if it says EXEMPT , leave it blank.  The 2019 1099-R in the equivalent boxes 12 and 14 which I am sure I left blank when completing the form are stored in my return with $0.00 in both the state withheld and distributed boxes.

[grandpaknei]

Irene2805 (Employee Tax Expert) mentioned you in a post! Join the conversation below:
Re: Form 1099-R states NYS withholdings cannot be greater than or equal to gross distribution.
On your 1099-R, since the NY pension is not taxable, leave boxes 14, 15, and 16 blank. This should prevent the error messages and let you e-file your return.
Grandpaknei:
Thanks Irene. Since Turbo Tax filled in the State and State ID automatically I did not think to blank out box 15. Also shame on me for not noticing that the state id number provided didn't match the one on the paper 1099-R. I have for years left 14 and 16 blank based on Turbo Tax help notes. I hope the notes are as clear as you were: if box 14 says exempt: “leave boxes 14, 15, and 16 blank.”

To be specific, what worked for me was to go to forms immediately upon starting TurboTax and blanked out those boxes in the 1099-R and was then able to proceed with filing without any other re-entry of data.

[grandpaknei]

Irene2805 (Employee Tax Expert) mentioned you in a post! Join the conversation below:
Re: Form 1099-R states NYS withholdings cannot be greater than or equal to gross distribution.How...
On your 1099-R, since the NY pension is not taxable, leave boxes 14, 15, and 16 blank. This should prevent the error messages and let you e-file your return.
Grandpaknei:
Thanks Irene. Since Turbo Tax filled in the State and State ID automatically I did not think to blank out box 15. Also shame on me for not noticing that the state id number provided didn't match the one on the paper 1099-R. I have for years left 14 and 16 blank based on Turbo Tax help notes. I hope the notes are as clear as you were: if box 14 says exempt: “leave boxes 14, 15, and 16 blank.”

To be specific, what worked for me was to go to forms immediately upon starting TurboTax and blanked out those boxes in the 1099-R and was then able to proceed with filing without any other re-entry of data.

[Irene2805]

Thanks for sharing the info!

[julialwtse1]

I have the same error message (The ostensible error check is that box 14 (withheld) can't be = or more than box 16 (gross distribuiton).  No matter what you put in 14 ($0.00 is the only truthful value) and 16 (box 1 gross or box 2a taxable)  the error keeps you looping through rejection after rejection. ) prevent me efile NY state for 2022 tax return.  Any suggestion?

[JulieS]

Yes, if you have no state income tax withheld, you can leave boxes 14, 15 and 16 blank. Not 0, but blank.

You may need to correct this on your 1099-R screen:

1. Open your return and make sure you are in the Federal section.
2. Select Wages & Income.
3. Find IRA, 401(k), Pension Plan Withdrawals (1099-R), on the list, click Start or Review to the right. 
4. Select Edit to the right of the 1099-R. If you see a circle with three dots, click on it and select Edit.
5. Click Continue until you get to Enter your 1099-R details from (name).
6. Scroll to the bottom and delete any entries for boxes 14, 15 and 16.
   Continue to the next screen, then select Review from the menu. 
7. Continue until you re-submit your state return for e-file. 

[ILDA CANTON]

How can I enter that my income is exempt from nys taxes

[Critter-3]

Your 1099-R might say NYS EXEMPT if your 1099-R distribution is less than $20,000 and is a federal, NYS state or local government pension or IRA. Per NYS, taxpayers over age 59 1/2 can deduct up to $20,000 of certain federal, NY state or local government pensions and certain IRAs on their New York return. If married filing jointly, each spouse may deduct up to $20,000. 

Please enter the information in the 1099-R entry form: 

• For Box 14 (State tax withheld), do not enter EXEMPT. Enter $0.
• For Box 15a (State), choose NY.
• For Box 15b (State number), enter as shown on Form 1099-R. 
• For Box 16 (State distribution), enter the distribution as shown in Box 1 (Gross distribution). 

If it is non-taxable in NYS based on the guidelines above, please follow the on-screen instructions and answer the questions pertaining to your 1099-R. In addition, please confirm it is being deducted out of your NYS income.

Please follow these steps in TurboTax to confirm:

1. Open your return.
2. Click on State in the left hand column.
3. Click Edit next to your resident return.
4. Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
5. Scroll down to Wage and retirement adjustments.
6. Click Start next to Received retirement income. 
7. Continue to the screen Governmental Pension Exclusion.
8. Enter $20,000 (or your distribution if less than that amount) for the question, Did you receive a pension or other distribution from a NY State or local government pension plan or federal government pension plan? 
9. The next screen will show your pension deduction summary. Only $20,000 (or your distribution if less than that amount) should be deducted from your pension.