Bug in NY State. Federal Annuity not excluded from income.

[user17698982497]

NY state return in TurboTax does not allow to exclude my federal annuity from income, if I am under full retirement age. NY law is that federal annuity is excluded from income at ANY age. See here https://www.tax.ny.gov/pit/file/information_for_seniors.htm , "If you received a pension or other distribution from a New York State or local government pension plan or federal government pension plan, you may subtract the amount of distribution that was included in your federal adjusted gross income, regardless of your age or of the form the payment(s) take. " When Intuit is going to fix this bug? I was there last year, too.

[user17698982497]

And when I override this error, Turbotax does not allow me to file the return. Requesting a refund.

[LenaH]

The deduction is automatic on your state return as long as you select the correct source of your distribution. After the 1099-R input, there are several screens that you must go through in order to get the full deduction for New York State. 

Please follow the steps below:

1. Go to your 1099-R and edit your entry.
2. Continue past the screens until you reach the screen, Where is your distribution from? Choose retirement distributions from the US Government. Click Continue.
3. Answer the questions on following screens.
4. Go to your New York return.
5. Continue past the screens until you reach, Your New York Income Adjustments. On this page, you will see the full amount of your taxable 1099-R deducted. 

@user17698982497 

[user17698982497]

No, you are wrong. I did that, but when I mark "under minimal retirement age"

My Federal Annuity distribution is not excluded

Did you read what I wrote? The bug is only apparent when I chose "under minimal retirement age". Mine is not typical case because I am collecting a federal pension from OPM while being under the minimal retirement age. 

Fix the bug, or give me a refund. 

[RogerD1]

@user17698982497 Where are you encountering the question of "Were you under minimum retirement age . . ."?  Please let us know what steps you took in the software when you encountered this question.

In the meantime, check to see if you answered the question about the source of the income, by following these steps (if using TurboTax download):

1. Go to the Personal tab, click Personal Income
2. Click "I'll choose what I work on"
3. Scroll to to where you enter IRA, 401(k), Pension Plan Withdrawals and then click Update to the right of that
4. On the "Your 1099-R Summary" screen, click the pencil icon on the right side of the 1099-R that you want to edit.
5. Click the square at the top right for "Office of Personnel Management (CSA 1099-R)"
6. Double check your entries on the "Enter your CSA 1099-R details" and click Continue
7. The next page will ask "Where is your distribution from" and click the appropriate circle.
8. Answer the remaining questions for the 1099-R until you reach the "Your 1099-R summary" page and click Done and answer the questions about disaster distributions.
9. Click the State Taxes tab and then Continue
10. Edit your NY return
11. Under Wage and retirement adjustments, click Update to the right of "Received retirement income"
12. Click Continue or Done on the next few pages.
13. Click on No for Long Island Railroad retirement
14. The next page will show a Pension Deduction Summary for NY

I did a mock return following the guidelines above for a taxpayer who was 55 years old and the pension deduction for NY was recognized and taken on the NY tax return.