On my NYS return, the credit for the Govt Pension appears, but so does the credit for other pensions. Should both credits be included or is there an error in TurboTax?

[LSG1]

@GabiUThank you. I just did this and created a token. It is 735439.

[Anonymous]

I'm getting both the $20,000 exclusion while it also subtracts the amount of my NYS pension, resulting in a negative number. While I'm not sure if that's correct, the problem I have is that TurboTax is saying I have an incorrect amount for my government exclusion. That amount, however, is put into the worksheet automatically based on what I put in my 1099-R, which is correct. I did see a note in the help system saying there was a problem with this calculation and that it would be fixed today. As of 1:45pm today it's still not fixed. Any update on a resolution for this?

[ReneeM7122]

It depends.  According to the New York State Department of Taxation and Finance:

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

In addition, income from pension plans described in section 114 of Title 4 of the U.S. code received while you are a nonresident of New York State is not taxable to New York. 

If your pension is taxable to New York and you are over the age of 59 ½ or turn 59 ½ during the tax year, you may qualify for a pension and annuity exclusion of up to $20,000. This exclusion from New York State taxable income applies to pension and annuity income included in your recomputed federal adjusted gross income. For more information on the pension exclusions and other benefits for retired people, see Publication 36, General Information for Senior Citizens and Retired Persons.

There is a reported issue with  state exempt pensions.   In order to get the calculation to work correctly, it has to be entered first on the federal side and then on the State.

Here are the steps to enter your exempt 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 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 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 State
3. If no additional information is required, click on Continue
4. Click on Done

[gregnugget]

I just did as you suggested and it appears to be fixed.  It looks like there is new nomenclature for selecting the pension - the choice of New York State & Local Employees Retirement System is replaced by other New York State pensions.  Someone can correct me if I'm wrong.  Bottom line though is that the New York State return is no longer taking out the $20,000 exclusion from a New York State pension which is not taxed anyway.  Thank you TurboTax for addressing this issue.