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albanyjints
New Member

New York State Return Problem

I have been using Turbotax for years.  I am a NY State retiree and my pension costs are taxed federally, but NOT by NYS.  For some reason, the 2020 version of Turbotax's NYS software counts my pension costs as taxable by the State -- which is NOT correct.  Rechecked my Federal entries several times.  Never had this problem.  Any NYS retirees having this problem,  Please help.  Thanks.

4 Replies
tdkguitar
Level 2

New York State Return Problem

I have the same problem. Further, when prompted in the state taxes section, I entered my pension amount in box 1. Now, my income adjustments summary shows an ADDITIONAL pension and annuity income exclusion of $20,000. Not that this affects my bottom line as far as NYS is concerned, but it doesn't look right. I'd love to know what's going on with the transfer of information from the federal program to the state program. Also, in the state return under the 414h section now, it asks when I'm going to file my return and pay my taxes. I've never seen this before! I'm hesitant to let this fly the way it is. I purchased this tax package so I wouldn't have to know the tax law inside and out. WTH is going on with this?!

LenaH
Expert Alumni

New York State Return Problem

If your 1099-R is tax exempt from NYS income tax, please make sure that you picked the correct classification in the TurboTax. 

 

Your pension income is not taxable in New York State when it is paid by:

  • New York State or local government
  • the federal government, including Social Security benefits
  • Certain public authorities

Please follow these steps and make sure all the required fields are completed:

  1. Open your return.
  2. Search 1099-R in the search box.
  3. Click the Jump to 1099-R on the top of the search results. 
  4. Add a 1099-R if you haven't already or click Edit next to the 1099-R you want to correct.
  5. Enter the information as shown on your 1099-R. 
  6. Answer the questions on the next screens.
  7. Make sure the correct source of your 1099-R is selected. 
  8. Answer the on-screen instructions. 
  9. Once complete, click on State on the left hand side. 
  10. Edit your resident return.
  11. Continue until you get to the page You Just Finished Your New York Return.
  12. Click on Start or Update to Adjustments to Federal Income under Changes to Federal Income
  13. Click on Received Retirement Income under Wage and retirement adjustments.
  14. Click continue.
  15. Enter the governmental pension exclusion.
  16. Click continue.
  17. Your deduction should show as zero amount taxable to NYS on the Pension Deduction Summary page. 

@albanyjints @tdkguitar

Donniemac
Level 3

New York State Return Problem

I had the same issue filing my mother's tax return. I found the following message on a different thread.

Good Luck

 

New York customers are currently experiencing an issue in TurboTax causing their New York pension exclusion to be incorrectly calculated.

 

We expect this issue to be resolved by 02/19/21. If you’d like to receive progress status updates, please sign up here.

 

@albanyjints 

Donniemac
Level 3

New York State Return Problem

I had the same issue filing my mother's tax return. I found the following message on a different thread.

Good Luck

 

New York customers are currently experiencing an issue in TurboTax causing their New York pension exclusion to be incorrectly calculated.

 

We expect this issue to be resolved by 02/19/21. If you’d like to receive progress status updates, please sign up here.

 

@tdkguitar 

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