Turbo tax Treatment of a Nonqualified Plan Distribution on New York Nonresident Return

[Lbelmonte01]

I am a resident of New Jersey who worked in New York.  I have received a Nonqualified plan distribution that is taxable in New York.  

The W2 received has the distribution in box 1 (wages), box 11 (non qualified plans) and box 16 (state wages).  Turbotax puts the amount in on line 8t of Schedule 1, not wages.

On New York State Tax return Turbotax puts the distribution on line 16 Other Income with the description "Nonqualified Pension" which I allocate 100% to New York.

When I e-filed my return it was rejected by New York with the following message "NYS Wages should not be equal to zero when W2 shows NY wages".

If I show it in NY Wages it will double count the distribution besides it is not in the Wage line on the Fed return.  If it can't be fixed, Turbotax then suggests to file by mail.  If I go to print New York return, Turbotax states that New York State requires most taxpayers to file electronically if they are using tax software to prepare their return.

Any thoughts on how to fix within Turbotax would be greatly appreciated.

[tagteam]

How do I contact TurboTax? (intuit.com)

[TomD8]

Are you sure the distribution is taxable by New York?  See this:

"The New York State Department of Taxation and Finance issued an advisory opinion explaining that a taxpayer’s payments from nonqualified deferred compensation plans to nonresident former employees, after termination of employment of the nonresidents, constitute retirement income and are therefore not subject to New York personal income tax, income tax withholding, or reporting."

https://www.stateandlocaltax.com/new-york/apples-and-oranges-new-york-applies-the-pension-source-law...

In any case, New York does prefer e-filing, but it permits paper filing of returns.  In fact, the instruction booklet for New York Form IT-203 contains mailing instructions and the following mailing addresses:

1. Mail your return by April 18, 2023.
   
   • If enclosing a payment (check or money order and Form IT-201-V), mail to:
     
     
     STATE PROCESSING CENTER
     PO BOX 15555
     ALBANY NY 12212-5555
     
     
   • If not enclosing a payment, mail to:
     
     
     STATE PROCESSING CENTER
     PO BOX 61000
     ALBANY NY 12261-0001

https://www.tax.ny.gov/forms/current-forms/it/it203i.htm#:~:text=The%20nonresident%20or%20part%2Dyea....