topic Unable to efile in NY, which requires efiling. What gives? in State tax filing

Unable to efile in NY, which requires efiling. What gives?

Swegnson — Mon, 22 Mar 2021 18:59:24 GMT

When I try to efile for New York I am subjected to a Final Check. Here I am shown a 1099-R and am told "Box 14a For electronic filing New York State withholdings can not be greater than or equal to gross distribution or state distribution. In my case I have had state tax withheld on a pension distribution. The gross distribution is positive but the state distribution is zero. This is accurate according to Fidelity which manages the distribution.

Is this a TurboTax issue or did NY State blow it with this bogus rule?

Re: Unable to efile in NY, which requires efiling. What gives?

LenaH — Mon, 22 Mar 2021 19:38:47 GMT

To fix this error and e-file your return, please enter the state distribution in Box 16 as it shows in Box 1. If you had state withholding, you need to enter the state distribution amount.

In addition, if you are over 59 1/2, you may qualify for a pension and annuity exclusion of up to $20,000 in NYS, as long as your pension is taxable to New York, and you are over the age of 59 ½ or turn 59 ½ during the tax year. If married filing jointly, each spouse may deduct up to $20,000, which would total $40,000 per tax year.

Please follow these steps in TurboTax to get to the correct NYS screen:

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.
Follow the on-screen instructions.

For more information, please see Publication 36.

Re: Unable to efile in NY, which requires efiling. What gives?

Swegnson — Mon, 22 Mar 2021 20:46:25 GMT

Thank you for the work around, but it should not have been necessary.