Retirement income derived from New York Optional Retirement Program

[mws_0]

State Turbo Tax for New York does not correctly exclude from state tax that portion of retirement income that was derived from the NY Optional Retirement Program (ORP).  This occurs even though I have checked the box labeled "New York State and City Education (Optional Retirement Program)". I need acknowledgement that TT handles this incorrectly and a fix or workaround.

[LenaH]

Per the State of New York, Optional Retirement Program members may subtract that portion attributable to employment with the State or City University of New York or the New York State Education Department.

To deduct the full amount of the pension, please follow the instructions below:

1. Open your return.
2. Click on State.
3. Edit New York.
4. Continue through your return until you get to the page Changes to Federal lncome.
5. Click Start next to Received retirement income.
6. Click Edit next to your 1099-R.
7. Enter the amount of your distribution in the box that qualifies for the governmental exclusion. 
8. Click Continue.
9. Click Done.
10. On the Pension Deduction Summary page, you will see the entire amount deducted for government pensions. 

[mws_0]

Thanks, Lena, your suggestion works.  However, I am disappointed that my initial entry of the 1099-R did not work.  To reiterate, in my initial entry using EasyStep under the question "Where is the Distribution from?", I checked the box labeled "New York State and City Education (Optional Retirement Program)".  This should have been sufficient to exclude this income from NY tax.