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barbpaul
Level 1

incorrect NYS pension exclusion

2019 tax year, State University of NY pension in NYS return.  Entered specific amount to be excluded in Governmental Pension Exclusion input.  That specific amount is over $20,000.  Pension Deduction Summary page then shows that specific amount on the line for 'New York deduction for government pensions' *and* $20,000 on the line 'New York deduction for other pensions'.  Two deductions for the same pension entry?  The total deduction ends up being almost 2X of the pension amount itself!

2 Best answer

Accepted Solutions
BillM223
Expert Alumni

incorrect NYS pension exclusion

*The Normal Case*

 

When you enter that you are a New York state resident, after you enter your 1099-R for your pension, there will be a series of screens. One screen will ask you to Select Your State.

 

When you select New York, the next screen will ask "Where is this distribution from?"

 

This will give you the opportunity to select the source of the pension. If you have a pension that qualifies for exclusion in New York, it will be removed from your New York return.

 

*Your Case*

 

Did you also enter the $20,000 as a subtraction or exclusion while inside the New York interview itself? If so, you should go back and remove it. The data entry immediately after the 1099-R is normally all you need to do.

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LenaH
Expert Alumni

incorrect NYS pension exclusion

The adjustment to exclude $20,000 from your NYS income is done 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:

  1. Open your return.
  2. Click on State in the left hand column.
  3. Click Edit next to your resident return.
  4. Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
  5. Scroll down to Wage and retirement adjustments.
  6. Click Start next to Received retirement income
  7. Continue to the screen Governmental Pension Exclusion.
  8. Enter $20,000 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? 
  9. The next screen will show your pension deduction summary. Only $20,000 should be deducted from your pension. 

Per NYS, taxpayers over age 59 1/2 can deduct up to $20,000 of certain federal, NY state or local government pensions and certain IRAs on their New York return. If married filing jointly, each spouse may deduct up to $20,000.

 

@Mamselle

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54 Replies
BillM223
Expert Alumni

incorrect NYS pension exclusion

*The Normal Case*

 

When you enter that you are a New York state resident, after you enter your 1099-R for your pension, there will be a series of screens. One screen will ask you to Select Your State.

 

When you select New York, the next screen will ask "Where is this distribution from?"

 

This will give you the opportunity to select the source of the pension. If you have a pension that qualifies for exclusion in New York, it will be removed from your New York return.

 

*Your Case*

 

Did you also enter the $20,000 as a subtraction or exclusion while inside the New York interview itself? If so, you should go back and remove it. The data entry immediately after the 1099-R is normally all you need to do.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Justbrenda69
Returning Member

incorrect NYS pension exclusion

I'm in the same situation.  NYS return automatically deducts the $20,000.  I never entered it manually.  I did select that the pension is from NYS education on the federal return.  I can't seem to find how to remove the $20,000.  I'm going over this return many times, and the worksheets, but can't find what is incorrect.  It all looks correct to me.  

jny
Returning Member

incorrect NYS pension exclusion

I have the exact same problem and can not figure out how to remedy it.  I only entered my NYS pension.  I did not enter a $20,000 exclusion and I can't get rid of it

jny
Returning Member

incorrect NYS pension exclusion

I have the exact same problem and can not figure out how to remedy it.  I only entered my NYS pension.  I did not enter a $20,000 exclusion and I can't get rid of it

EmayPA
New Member

incorrect NYS pension exclusion

SAME problem here.  It knows correctly that the pensions are not taxable by NYS, but INSISTS on adding in the $20k exclusion THAT DOES NOT APPLY.  Fix this, Intuit.  It tells me that I have to fix it in my Federal return, where it is already correct.

EmayPA
New Member

incorrect NYS pension exclusion

NOT SOLVED.  Sources are correct, pensions rightly noted that they are exempt, yet still deducting another $20k.  Fix it.

 

georgenjg
New Member

incorrect NYS pension exclusion

When I enter my Union pension info I asked questions about my IRA account not my Union pension

 

Mamselle
Level 2

incorrect NYS pension exclusion

Same problem for me.  I filed for an extension hoping somebody (Turbo Tax, are you listening?) will fix this.

ned_head1
Level 1

incorrect NYS pension exclusion

This is still not fixed and Intuit customer service does not pick up the phone or I get disconnected.

I think I am going to have to find a different tax prep software because they obviously do not get it.

Critter-3
Level 15

incorrect NYS pension exclusion

It was never broken ...  you must enter this in the federal 1099-R  entry section only properly.  Read the approved answer in this thread.  

 

If you still need help contact support on Monday :

To call TurboTax customer support

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

 

 

ned_head1
Level 1

incorrect NYS pension exclusion

After speaking with several people at Intuit: This is a KNOWN bug and they hope to have it fixed for the 2020 version.

There is no fix for 2019 as of 12/2020 in spite of what was previously posted

JoeHay--
Level 3

incorrect NYS pension exclusion

As of January 1, 2020, for TurboTax 2020, I have the same problem where the 20k exclusion is deducted when it should not be deducted for New York State Teachers Retirement System.

Pension Deduction Summary

   We automatically calculated your New York pension deductions.

                                                                                                           Joe                        Jane

Total federal taxable non-disability pensions and IRA                $120,000              $48,000

distributions                                                                                               

New York deduction for government pensions                                        $0              $48,000

New York deduction for railroad retirement                                             $0                       $0

New York deduction for other pensions                                           $20,000             $20,000        <-- should be 0

Total taxable pensions and IRA distributions                                 $100,000           -$20,000

 

RMB NY
Level 2

incorrect NYS pension exclusion

This bug is still in the tool it has not been resolved.

 

I am trying to prepare for 2020.  My NYS & Local governmental pension payments are correctly being excluded from taxable income for NY State.  However, as stated in this thread, the TurboTax tool is still applying an additional $20,000 Pension and Annuity Exclusion in NYS tax application -- and it shouldn't be.  This is not a Tax Regulation or CPA question it is clearly a glitch in the software.  I spoke to customer service and they said they are aware that this bug exists, they have no timeframe for fixing it.

Mamselle
Level 2

incorrect NYS pension exclusion

I had the same problem, but (back in August 2019) I was fortunate enough to talk with someone at TurboTax who acknowledged the problem and suggested a work-around.  Looking at these recent posts, I see that not only has the problem not been solved but the work-around isn't generally known to TurboTax support.

The work-around I used was to indicate that my NYS pension was a pension from the US Government.  (I know it's not, but stick with me.)  The "US Government pension" was then treated the same as a NYS pension should have been.  There was no incorrect extra $20,000 deduction for another pension I don't have and my pension was correctly listed as a deduction on my NYS State tax return.
Problem solved--at least for me.
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