New York State IT-201 - The "Pensions/Annuities/IRAs Worksheet" is showing the wrong amount on line 4b

[Kaalki]

New York State IT-201 - The "Pensions/Annuities/IRAs Worksheet" is showing the wrong amount on line 4b for my IRA distribution.
I turned 59.5 in April, and made a Roth conversion ($15,000) on a single date in December. I entered the 1099-R info in the Federal Income section and selected the button indicating it was not an early withdrawal. The NYS "Pensions/Annuities/IRAs Worksheet" in TurboTax shows $15,000 on Line 3 (pension and annuity income) but only $10,000 on line 4b (pension and annuity income exclusion). The full amount should be eligible for exclusion because it's less than $20,000 and I was over 59.5 when it was converted. It seems that TT doesn't understand that the full amount was distributed after I turned 59.5 and instead treats it as if it were distributed evenly over the course of the year (one-third before I turned 59.5 in April and two-thirds after). There seems to be no place to indicate when the distribution/conversion was made. How can I report this issue to TurboTax? 

[AmyC]

Follow these steps:

1. Open to NY
2. Continue to Retirement Distributions Summary or Pension and Annuity Exclusion
3. Edit each 1099-R
4. Enter the date you began receiving you receiving your pension

I recreated your scenario with a birthdate to turn 59.5 near the end of the year. I marked the distribution date after turning 59.5 and can see the exclusions with no issues.

Verify:

NY Pension / Annuities worksheet

Part I has: 

Date listed

Gross

Federal

NY taxable

Part II

line 3

line 4b

NYS Publication 36 states: "If you became age 59½ during the tax year, the exclusion is allowed only for the amount of pension and annuity income received on or after you became 59½, but not more than $20,000."

[Kaalki]

Thank you for your reply.

I have followed the recommended steps and the error persists (line 4b on the Pen Ann IRA Wks is incorrect).

After my first pass through your recommended steps didn't work, I deleted the 1099R and started over with a new one but got the same result.  I have confirmed that in Part I of the form, the date is now listed and the gross and federal amounts are there; the NY taxable amount is blank (box 16 on the 1099R is empty). In Part II, line 3 shows the correct amount but line 4b still shows the same incorrect amount.

In the process, I noticed some other (potential) anomalies:

1.  There is only one worksheet and in Part I, the Payer's name and EIN match the payer for my spouse's pension.  The payer for my IRA is not indicated anywhere on the form.
2.  Although I had indicated in the step-by-step that the IRA/SEP/SIMPLE was checked, it was not checked on the form itself; checking it manually had no effect.

I appreciate any additional guidance.

[RogerD1 · Accepted solution]

When you enter your 1099-R forms, you get to a screen "Where is your distribution from?" - for your 1099-R forms, the bottom selection "None of the above" would be correct.  Make sure that box is checked in TurboTax for both 1099-R forms.

Heading over to the New York return, you'll get to a screen "Changes to Federal Income":

1. Select Start or Update for "Received retirement income" in the Wage and retirement adjustments section.
2. On the "Retirement Distributions Summary" screen, both of the 1099 R forms will be listed.  Click Edit for the first one
3. Answer the question about whether it is a beneficiary IRA
4. If you turned 59-1/2 in 2025, the next question will ask when you received the distribution - if you enter a date after you turned 59-1/2, the distribution will be eligible for the $20,000 pension/IRA exclusion.
5. Repeat this for the 2nd IRA.  If this IRA was taken by someone who did not turn 59-1/2 in 2025, then the distribution date question will not show up.
6. Click Done

In a mock return that I did, for two distributions for each spouse over $20,000 and both older than 59-1/2 at the time of distribution, it gave a $20,000 result on line 4b for each spouse on the Pen Ann IRA Wks.  There was also a $40,000 subtraction amount on line 29 of Form IT-201 for Pension and annuity income exclusion.