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posted Feb 22, 2024 2:55:29 PM

New York State $20K Pension Exclusion for Inherited IRA

My wife and her two siblings inherited an IRA from her mother who passed in 2021. In reviewing New York  publication 36, my wife would only be intitled to take 1/3 of the $20K pension exemption. When I get to the state section of turbo tax I go into the Wage and Retirement adjustments section of the Changes to Federal Income page. I identify the distribution as an inherited IRA and fill out the subsequent pages with the appropriate information (specifically the Enter Decedent Information). After going through the screens it takes me to the Pension Deduction Summary page where the $6,660 pension exemption isn't identified. I've tried various options but nothing seems to work. 

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1 Replies
Employee Tax Expert
Feb 24, 2024 9:46:32 AM

If you are still getting an error, it would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue.

 

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools. 

  1. Then select Tools below Tax Tools. 
  2. A window will pop up which says Tools Center.  
  3. On this screen, select Share my file with Agent. 
  4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
  5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  
The instructions for TurboTax Download:
  1. On your menu bar at the very top, click "Online"
  2. Select "Send Tax File to Agent"
  3. Click "Send"
  4. The pop-up will have a token number
  5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information. 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

 

@FloridaBound