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austitus
New Member

Sec 457 pension distribution is not taxable by New York up to $20k. Turbo tax is not populating it to pension worksheet. How to navigate to get the $20k deduction?

 
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4 Replies
LenaH
Employee Tax Expert

Sec 457 pension distribution is not taxable by New York up to $20k. Turbo tax is not populating it to pension worksheet. How to navigate to get the $20k deduction?

Please follow the steps below to ensure your NYS exclusion of $20,000 populates on your return:

  1. Open your state return. 
  2. Continue until you get to the page You Just Finished Your New York Return.
  3. Click on Start or Update to Adjustments to Federal Income under Changes to Federal Income
  4. Click on Received Retirement Income under Wage and retirement adjustments.
  5. Click Continue.
  6. Click Edit (or the pencil) next to your 1099-R. 
  7. Answer the on-screen questions. 
  8. Your deduction of $20,000 show on the Pension Deduction Summary page. 
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austitus
New Member

Sec 457 pension distribution is not taxable by New York up to $20k. Turbo tax is not populating it to pension worksheet. How to navigate to get the $20k deduction?

The 457 distribution is reported on W2 box 11, not on 1099. TurboTax does not populate the NYS deduction of $20,0000 max from the W2 box 11

SusanY1
Employee Tax Expert

Sec 457 pension distribution is not taxable by New York up to $20k. Turbo tax is not populating it to pension worksheet. How to navigate to get the $20k deduction?

According to the NY state common questions about the pension subtraction 457 plans are not eligible for this exclusion.  

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austitus
New Member

Sec 457 pension distribution is not taxable by New York up to $20k. Turbo tax is not populating it to pension worksheet. How to navigate to get the $20k deduction?

Thank you Susan. I checked the link you provided and found this: "Since these plans are not funded by the employer, they wouldn’t qualify for full exclusion but would qualify for the $20,000 pension and annuity income exclusion under Tax Law section 612(c)(3-a)." I am satisfied with a max exclusion of $20,000 (better than nothing). But TurboTax is not populating it onto the tax form.

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