NY COVID distributions delay

im having the same issue i hope it is solved soon 

Yup same here.  Hoping it gets resolved soon.

We are having the same issue using TurboTax for Home and Business

Not possible to fix error, not possible to file NY state  

has anyone found a fix regarding this issue ? is there any turbo tax employees that can find a fix for this problem what is going on . 

As of Tues 3/2, I'm having the same issue e-filing my NY state return.  I filed my federal return; but am unable to file my NY state return, due to the following error/message: 

"Pension/Annuities/IRA worksheet: Txble Pens/IRA (Reg Dist). We're still working on updates related to Retirement Distributions that qualify for disaster or covid relief. You can keep working on your return and we'll remove this message when it's ready."

I tried the fix suggested by HeatherPLO on 2/27 prior to e-filing my federal return; but it did not work, so I'm still waiting to e-file my NY state return.  I read in a separate thread that a fix was expected yesterday (Monday 3/1); but apparently that was incorrect!  

@richpatrie reported in a separate, but related thread, that he was told the fix for this issue was expected on March 5th.  Hopefully it's true! Very frustrating.

Still getting the message today - 3/7/2021. Not sure when this will be fixed or if a special "state" update is required aside from the regular prompted updates. Don't think that would be the case but just surprised this has not been fixed yet. Seems like a simple issue to resolve.

I called TT and spoke with a very nice representative named Judy.  She said TT is aware of the issue; but she could not provide a date for a fix.  TT needs to include/incorporate a NY state form called "Enhanced Form IT-558, New York Adjustments due to Decoupling from the IRC" into their software so that we can e-file NY state returns.  Judy did not see any mention of a 3/19 fix date; but her recommendation was to try back in a week. 😞

The form has been available on the NY State gov tax site since 2/12/21 (https://www.tax.ny.gov/pit/ads/efile_addit558-2d.htm) -- if we can believe the 'last updated date, so TT has had time to add it to their software.  The fact that TT doesn't have have an estimated fix date is concerning.  

I recommend that everyone who has time contact TT about this issue so it gets quicker attention (hopefully).  I called [phone number removed].

I have an update, in case it helps anyone. Basically, NY state decided to do this thing called "decoupling," where they do things differently than the federal government in terms of the COVID cares act. Initially they wanted to tax the entire amount taken out of a retirement fund instead of spreading it out over three years. And then, they changed their minds. So now, thankfully, it is treated the same way the IRS treats it. They did that with other items as well, but I know the most about this because I took money out of an IRA.

The form used to recalculate your income for NY state is called IT-558. If you look at the instructions, which can be found at https://www.tax.ny.gov/pdf/current_forms/it/it558i.pdf, you can see on page 2, there are a bunch of items such as A-001 that now say "intentionally omitted." Those are the things NY state changed its mind on and decided to do things the same way as the IRS. If your tax issue is one of those, you don't actually need to file IT-558. I spoke with the NY state tax department for verification. The form only exists for people who need to calculate a new taxable income.

Now of course, the turbotax people seem too stupid to know any of this. So if you call, you will get told a different piece of misinformation by each agent. And at the end of the call they will each ask you to please rate them well.

The reality is, I think turbotax has not programmed the worksheet so it applies to the right people. People like me shouldn't even be doing the worksheet. You can check your specific situation here:

https://www.tax.ny.gov/pit/cares-act-faq.htm

So I found a workaround to be able to efile.

I went back into the federal tax forms and in the retirement withdrawal area I entered in a third of the distribution instead of the whole dollar amount. Now note that I already efiled the IRS return and it was accepted, so this was simply to make the system work for the state return efile. Do NOT do this if you have not yet filed the IRS return and had it accepted. Otherwise you will mess up your federal return. 

So for example, I took $20,000 out of an IRA, and I should be taxed $6667 for three years. After the IRS efile was accepted, I went back in and I entered $6667 as the total distribution. I then did NOT indicate this was due to COVID. Now it feeds into the NY state return without flagging that I need to do form IT-558 and I was able to get all the way to efile (I have not yet gotten notice that it was accepted but I only did this 10 minutes ago).

In case you are wondering, NY state does. not require forms that show each 1099 (which is what you get when you take $$ out of a retirement account), where as the IRS does. So in this case I just needed the math to be correct for NY state.

Don't do any of this without checking to see how NY state treats your situation. If your taxable amount changes based on their rules, you are stuck waiting for turbotax to enter that form. 

Oh, also. I will never be using turbotax again. Ever. Idiots. All of them. I assume they will be sending me a large check in the mail since I just did the job of their tax professionals and call agents in getting this figured out.

I spoke with an customer service today & she said there is going to be another update to fix this on 3/19.  I can only hope this update will actually fix the issue.