New York State Subtractions

[XP666]

Sorry to say that the TurboTax New York State software seems having a problem to recognize income from New York City government. I worked and retired from New York City government. I got the right amount of refund from NYS for 2022, but my local government pension was subtracted on line 29 instead of line 26. So that means if in couple of years when I get RMD there will be no place to subtract my RMD exclusion amount due to my government pension amount occupied line 29 already. So this year, at least the refund amount is correct but some year in the near future, the amount will be wrong. I'm not sure if someone has the same issues. I missed this issue before filing since the bottom line is correct. Now RMD concerning triggered I went back to my tax return then found this issue in the software. The pension 1099 clearly shows the source so shouldn't be on line 29. Hope Turbo Tax software team can see my post and the next year this won't happen when we do New York taxes. 

[JosephS1]

Please clarify and expand upon your question.  There is in the NY allocations a box for both governmental and non-government entries for data from a retirement plan.  Please check that you placed the amount in the proper box.  I have included a screenshot from TurboTax online for the particular item.

I am not saying you did not place the information here, only suggesting you may want to check that particular box to see if it is the same.

@XP666 

[jeannefabianengel]

Turbo Tax does not recognize  New York State Government Retirement Income, and there is no way to correct it on the form. Therefore the income becomes entirely taxable (except for a $20,000 exclusion) when it should be nontaxable. There is no way to correct it on the form, and this has cost an inordinate amount of wasted time trying to fix it.  This is a serious problem, and you really should refund those users who cannot work with this state software since it has to be done manually.

[jeannefabianengel]

I cannot find this on any state allocation worksheet.

[fitomex]

I've also had this problem with Turbotax when entering in the NYC TRS distribution. I believe you have to enter the 1099R taxable distribution into the state section (box 16) when completing the federal income section. (I also had to enter the payer's ID number as well.) You will then have to answer the following questions posed by Turbotax. This should then correctly post the distribution on the correct lines on NYS forms and subtract the full distribution amount. 

I hope this helps.

Frustrated user. 

[User45yrs]

Using Turbo tax for over 45 yrs and starting 2020 with NYC pension taxable & nontaxable they have not got it right.  Had to pay addition taxes and interest. Now I am going back and redoing my taxes>

Bummer!

[LenaH]

Can you clarify the issue you are having so we can assist you further?

@User45yrs 

[Charley Brown]

There seems to be a serious error in TURBOTAX related new york state subtractions for

New York State subtractions: in a MFJ filing, one individual can deduct up to

$20,000 of retirement income from RMD that is not NYstate pension, but the

second individual has no way of subtracting similar amounts as the law permits.

Is there a remedy for this glitch?

[MarilynG1]

If your pension is taxable to New York and you are over the age of 59 ½ or turn 59 ½ during the tax year, you may qualify for a pension and annuity exclusion of up to $20,000. This applies to each taxpayer individually and has nothing to do with RMD, just the amount of the pension distribution, so you're correct that you should both receive the 20K exclusion if you qualify. 

Here's more info from NY Dept. of Taxation.

If you're using TurboTax Online, clear your Cache and Cookies and step through the 1099-R entries in your Federal return again.  If you're a NY resident, you can enter the distribution  amount in Box 16 (State Distribution), to be sure it flows into your NY return, even if it's not shown on your 1099-R.

Return to the NY interview and click on 'Adjustments to Federal Income' and then check the Pension & Annuities Worksheet to see the exclusions applied properly.

@Charley Brown