topic Re: NYS Retirement in Retirement tax questions

NYS Retirement

lbilletts — Fri, 12 Feb 2021 21:06:30 GMT

I was under the assumption that my NYS retirement is not NYS taxable yet it is not being deducted from the amount taxed by NY. Am I missing something? This is my first year filing my retirement.

Thank you

Re: NYS Retirement

ThomasM125 — Fri, 12 Feb 2021 21:35:01 GMT

Your NYS retirement pension benefits are not taxable if you are 65 years old or older. When you enter your W-2 form in TurboTax, you need to indicate that you have New York government pension. You will see this form and must choose one of the options:

Re: NYS Retirement

Donniemac — Sat, 13 Feb 2021 21:22:32 GMT

TurboTax is having issues with the New York State retirement exclusion. They have issued the following statement. "New York customers are currently experiencing an issue in TurboTax causing their New York pension exclusions to be incorrectly calculated. We expect this issue to be resolved by 02/19/21."

Re: NYS Retirement

lbilletts — Sun, 14 Feb 2021 23:48:10 GMT

Thank you

Re: NYS Retirement

Marcia7 — Fri, 19 Feb 2021 14:08:35 GMT

We are retired Teachers receiving a pension from New York State. Our income tax for the state was rejected. Perhaps I coded it inaccurately?

Re: NYS Retirement

Irene2805 — Fri, 19 Feb 2021 14:27:45 GMT

What was the reject message?

Please heck your entries and wait until tomorrow to e-file again.

@Marcia7

Re: NYS Retirement

Marcia7 — Fri, 19 Feb 2021 15:57:48 GMT

The message said our state return was rejected

Re: NYS Retirement

mmalinos — Fri, 19 Feb 2021 17:32:33 GMT

Same result here. My retirement is from the NYS Employee Retirement System. NYS rejected our return. I will wait until tomorrow (2/20) and re-file unless there are updates coming indicating the problem has not been resolved.

Re: NYS Retirement

Donniemac — Fri, 19 Feb 2021 18:59:16 GMT

TurboTax has issued a New York State update that fixes this issue. You will need to go into your return and fix the retirement system issue.

GO TO

- FEDERAL TAXES

- Wages & Income

- IRA, 401(k), Pension Plan... (UPDATE)

- Edit - NYS & Local Employees Retirement System

- Continue until you get to "Where is this distribution from?"

You will notice that NYSLRS is no longer listed as an option

TurboTax most likely changed your selection to US Government (Including Military)

Select "Other Pensions of New York State and Local Governments"

Answer the remaining question and then go through New York State again to check for errors

I hope this helps.

@mmalinos @lbilletts @Marcia7 @Irene2805 @ThomasM125

Re: NYS Retirement

mmalinos — Fri, 19 Feb 2021 19:33:27 GMT

I just opened up Turbo Tax and no updates were provided. I went into my return as instructed and it continues to default to US Government (Including Military) at the distribution screen after I performed the NYS check/review.

I even clicked on "Check for Updates" under Turbo Tax. I'm using the downloaded version.

Re: NYS Retirement

Donniemac — Fri, 19 Feb 2021 20:21:13 GMT

Is your version of TurboTax still showing NYSLRS as an option? If not, check the Other Pensions of New York State and Local Government and continue. For some reason it always reverts to the US Government option if you go back. You can double check by clicking on the Forms tab in the upper right hand corner scroll down to New York Form IT-201 Page1-2, Line 26 should show your New York State pension amount. If it is blank then it will probably get rejected again. If it has your full retirement amount listed you should be good to go.

Good Luck!

@mmalinos

Re: NYS Retirement

mmalinos — Sat, 20 Feb 2021 00:33:29 GMT

Thanks for your attention to this. My version of Turbo Tax does not show the NYSLRS as an option. As you suggested, I went to forms and on New York Form IT-201 Page 1-2, Line 26 and it does show the exclusion amount.

I did everything per your instructions but when I printed my return just prior to submission to NYS, on Form NYIW7801.SCR 02/12/21, Other Tax Credits and Taxes Worksheet, Part 1 - Calculations of Taxable Income Amounts, the Box for Qualifies for government exclusion is NOT checked. Looking back at my 2019 submission, this box is checked. I fear I will get another rejection.

Re: NYS Retirement

mmalinos — Sat, 20 Feb 2021 00:45:10 GMT

Please disregard my last post. I will wait to see if the return is accepted and let you know.

Thank you!

Re: NYS Retirement

Donniemac — Sat, 20 Feb 2021 01:28:42 GMT

It seems like that might be the worksheet for your original tax return since it has the 02/12/21 date. You can easily check you new return by clicking the Forms button and going to NY Forms, Pen Ann IRA Wks. The Qualifies for government exclusion box should now be checked.

Good Luck.

@mmalinos

Re: NYS Retirement

mmalinos — Mon, 22 Feb 2021 21:18:26 GMT

UPDATE: All good, NYS accepted our revised return. My thanks to everyone for their assistance and to Turbo Tax for their software fix.

Re: NYS Retirement

gho — Sat, 27 Feb 2021 18:13:17 GMT

It's 2/27 and NYS retirement is still coming up as taxable - re-installed and re-did Turbo, still coming up with error on State form. Any further estimate when this will be resolved?

Re: NYS Retirement

gho — Sun, 28 Feb 2021 16:58:56 GMT

Re-installed/updated TT again. Made changes as per previous posts, TT seems to treat entire sum of pension as an IRA and taxes at a rate higher than Federal tax(!) on pension. made changes to Federal form (worksheet), checked qualifies for gov exclusion. On state, shows upp as IRA distribution (4B taxable) needs to be on 5A but can't move. Called TT help and the staff checked remotely -- told me NYS retirement is charged NYS State tax over 20% of pension (as per above, TT program charging more for state tax than for federal tax). And I thought this calculation was for Federal Social security. This is second year of doing retirement tax, did laws change from last year? Anyway, dead end for Turbo Tax. Searching for alternative program/tax consultant unless someone has a solution -- if none, goodbye TT after 20 years....

Re: NYS Retirement

gho — Sun, 28 Feb 2021 19:11:00 GMT

This option does not exist in Turbo Tax 2-27-21 updated

Re: NYS Retirement

earlyriser09 — Sun, 07 Mar 2021 15:42:32 GMT

Thanks for this info. Really hard to imagine that TurboTax cannot get this right. I have been filing NY State taxes with TurboTax as a retiree for years. Never had any issue. I have to purchase an additional state for NY so it costs $48 on top of what I paid for TurboTax. Absolutely unacceptable!

Re: NYS Retirement

cran48 — Wed, 17 Mar 2021 14:13:19 GMT

I Made a mistake on my federal tax return putting my NYS retirement amount in wrong box didn't discover it till I started doing the state forms changed the federal return but still can not get state return to take off NYS retirement money as not taxed