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Level 1
posted Mar 23, 2025 10:42:47 AM

turbotaxonline is not treating a NY inherited 401k correctly. There are 3 beneficiaries so $6666,67 shouldn't be taxed. How do I correct this?

0 6 589
6 Replies
Expert Alumni
Mar 23, 2025 10:46:11 AM

@mike_debra It must be an entry error.  Can you clarify and provide more details on how you are entering? 

Level 1
Mar 23, 2025 11:18:50 AM

Married Filing jointly. I also have a 1099r  for @$20,000 which was not taxed by NY. My wife's 1099R was imported and I verified all fields. Followup questions

1) Not eligible for exclusion for those over age 59 1/2 (turning off had no effect)

2) I inherited this IRA

3) Someone who passed away

4) No non deductible

5) decedent born before 1951

6) R.M.D. amount

7) Entire

And that's the last of the questions

Level 1
Mar 23, 2025 12:02:38 PM

So, I deleted both 1099-R and reentered. Now neither is showing up in New York Subtractions. It shows as $10,000 (from NY 529) where it was $30,000. But it should be $36,667. This is what Free Tax U.S.A shows.

Expert Alumni
Mar 23, 2025 1:47:03 PM

@mike_debra Did you see the screen below?  It is in the New York section.

 

Level 1
Mar 23, 2025 2:19:25 PM

No. How do I get there? I am using Turbo Tax Online

Level 1
Mar 24, 2025 6:35:46 AM

It appears changes made to the 1099-R are not carried over to the state return. I had set the eligibility flag set incorrectly when I started the state return. After I went back to federal to correct it , it wasn't carried over. I deleted my state return and started over. I now get the screen you showed and the numbers are now correct. Thanks for your help.