Where do I indicate i am state tax exempt on my 1099-R?

[xmasbaby0]

Do you mean your state does not tax retirement income?  TurboTax's software will follow all of the tax laws regarding your retirement income.  Enter your 1099R in the federal software carefully.  The information flows to the state return.  If your retirement income is not taxable in your state, it will not be taxed on your state form.

[ajlevesque13]

1099-R Box 14 state tax withheld is EXEMPT but TurboTax is not registering this.  Is there any way to correct this?  

[DawnC]

Just leave all of the state boxes empty; you can't entered words into those fields.   Box 14 reports the state withholding; if you did not have state tax withheld, there is nothing to enter in those boxes.  TurboTax's software will follow all of the tax laws regarding your retirement income.   If your retirement income is not taxable in your state, your state income tax will be adjusted when you go through the state portion of your tax return.   @ajlevesque13

[DaveP16]

I have read your responses to the same questions. But, TT does not exempt the State tax for NYSLRS income. Residents in NYS are EXEMPT from paying State tax on their NYS Pension. It is not working.

Thanks,

Dave  

[DaveF1006]

it depends how you entered your information. If you have a pension from the New York school retirement system, you be exempt from taxation on it. You will see this form after you enter your W-2 in the federal section of TurboTax: Note, ignore the $30,000 amount recorded at the bottom under NY distribution amount.

[larco849]

My wife and I have NY state pensions. When I enter my 1099R on the federal forms it shows that I owe State taxes although the 1099 R shows we are exempt

[ErnieS0]

Check your entries. After you enter your 1099-Rs, TurboTax will ask you the source of your pension.

You can deduct certain federal, New York state, or local government pension distributions from your New York income. Government pensions include those from these sources:

• US government, its territories or possessions, or the District of Columbia
• Military
• New York State, including State and City universities of New York and New York State Education Department (Optional Retirement Program)
• Manhattan and Bronx Surface Transit Operating Authority
• Long Island Railroad Company
• Metropolitan Transit Authority (MTA) Police 20-Year Retirement Program
• Local governments within New York

Those over age 59 1/2 can deduct up to $20,000 of certain IRA and other pension benefits on their New York return (if Married Filing Jointly, each spouse may deduct up to $20,000). 

Beneficiaries who receive pension benefits of deceased persons over age 59 1/2 may also qualify. We'll need to gather additional information when we work on your New York return.

New York doesn't tax Social Security or Railroad Retirement benefits. TurboTax automatically reduces your New York income for any benefits taxable on your federal return.

@larco849

[DanHM]

This confuses me every year. If you're using the "Forms" view to do your taxes, switch to "Step-by-Step", go to the State tab, and navigate your way to the part where they ask about the pension. In that section, you can indicate that the pension is state tax-exempt.

Intuit, it would be great if this could be done via the 1099R interface in Forms.

[ErnieS0]

You can enter the New York government exclusion using the Forms mode in TurboTax CD/Download.

In the New York forms set, find the appropriate Pensions/Annuities/IRAs Worksheet and check Qualifies for government exclusion in the Special Type Indicator.

@DanHM

[citi101q]

i have left the tax with held on my nys 1098 r blank and 0.00 and it won't let me e file either way.what can i do

[AmyC]

@citi101q  Since this is nontaxable to the state, you should have box 14 blank on your form. Instead, leave all boxes in the state section blank. This is boxes 14, 15, and 16. 

If that does not work, follow these steps:

1. Delete the form, see How to Delete  
2. Log out of your return and try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cache and cookies,
   • Sign in using a different browser.
   • Sign in using a different device.
3. Log back into your return.
   • Enter the form again.