The NYS tax form is taxing my NYS pension. That is incorrect. It is treating it like it is a taxable pension minus $20,000. NYS pension is only taxed federally.

To get the exclusion to work correctly, try selecting US Government (Including Military) instead of New York State and Local Retirement System (NYSLRS). 

 

Other users have encountered this issue and found that their NYS pension was correctly treated (tax-exempt for BY) selecting US Government (Including Military) as the answer to "Where did this distribution come from?"

Have the same problem Used that federal "solution" although this is the first year of the ten I have been retired where the problem arose. I reported it by phone to TT on 1/22/2021 and received a case number. I also reported the problem to the NYS Tax Department representative who works with TT. Still no resolution as of the issue. NYS Local and State Employee Pensions are tax exempt in NYS. 

This is a known issue. Please see this TurboTax Help page and sign up to be notified of updates.

Sooooo, a month later and this "known issue" still isn't fixed?

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 State income tax return.

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

@kljikjhnk

Where do you select this? 

I can change the Payer's name but that doesn't change the taxability of my pension for NYS state taxes.

 

Please check your selection on the "Where Is This Distribution From?" screen in the federal interview:

 

1. Click "Wages & Income" (under Federal) on the left
2. Scroll down and click "Show more" next to "Retirement Plans and Social Security"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Enter Form 1099-R information and click "Continue"
5. Continue until you get the "Where Is This Distribution From?" screen and make the appropriate selection.

 

If this doesn't help then please provide more information about what kind of retirement you have and if you are over 59 1/2.

 

 

@pdrace2 

Thanks, got it!