topic Taxable NYS deferred comp lump sum withdrawal in State tax filing

Taxable NYS deferred comp lump sum withdrawal

dbrylin5614 — Sat, 20 Mar 2021 16:52:30 GMT

Turbotax free- 1099R NYS deferred comp withdrawal added to retirement income in Federal portion. Checked "qualified plan". It was partial lump sum and so IS subject to NYS tax but Turbotax is still subtracting the $20,000 exclusion off NYS taxable income even though I checked the box that it IS NOT part of a periodic distribution plan. Do not believe information is porting over to NY correctly. Since using free version is there a way for me to override the $20,000 exclusion on the IT-201 form?

Re: Taxable NYS deferred comp lump sum withdrawal

LenaH — Sat, 20 Mar 2021 17:13:47 GMT

Yes. If you do not qualify due to your distribution being a lump sum payment, then you can delete the exclusion under Wage and retirement adjustments. This is found on the NYS screen Changes to Federal Income.

You can follow these steps in TurboTax to exclude $20,000 of your retirement income:

Open your return.
Click on State in the left hand column.
Click Edit next to your resident return.
Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
Scroll down to Wage and retirement adjustments.
Click Start next to Received retirement income.
Continue to the screen Governmental Pension Exclusion.
Enter $0 for the question, Did you receive a pension or other distribution from a NY State or local government pension plan or federal government pension plan?
The next screen will show your pension deduction summary, in which none of your 1099-R is nontaxable.

Re: Taxable NYS deferred comp lump sum withdrawal

dbrylin5614 — Sun, 21 Mar 2021 01:27:59 GMT

Did not work. When I get to Step 7 I have no screen or link for "Government Pension Exclusion" in order to change. When I review within the New York return The summary shows the $20000 deduction and says any changes must be made in the Federal. I tried deleting the 1099 and starting again but it just ended up the same.