New York State return rejected

[jnwestlake]

New York State Tax return was rejected.  Went to return and was not able to find reason for return.  Notice said we would see details causing the problem would come up.  It never did.  What is the reason for rejection?

[vnorman]

I filed a week ago and late last night I received an e-mail telling me my NYS return was rejected. I opened my return this morning and was told the error had to do with my Long Island Railroad pension. I don't have a LIRR pension. So I reviewed all my 1099-Rs looking for an error and found nothing. Then I reviewed my NYS return, found no errors so e-filed again. It appears many different states rejected Turbotax returns with all kinds of different issues. I'm hoping it was just a software bug and after the latest software update the problem will be resolved. Hope is not a good strategy though, is it? If my NYS return gets rejected again I'm not sure what I'll do. I've used Turbotax for 25 years and this is the first problem I've ever had...unfortunately, that doesn't help me. Good luck!

[gbishop-593]

One week after e-filing my NYS return I received a Rejection...and TurboTax told me to open my taxes and the error would be apparent. I opened the tax file and nothing appeared to be an error. They did show me a caution note related to form IT-214, but according to instructions I do not need to file this form. E-filed again after the software update...will see if that fixes the problem.

[Donniemac]

If you are a New York State retiree and are in the NYSLRS, there was an issue with TurboTax incorrectly categorizing your pension.

TurboTax has issued a New York State update that fixes this issue.  You will need to go into your return and fix the retirement system issue.

GO TO

- FEDERAL TAXES

- Wages & Income

- IRA, 401(k), Pension Plan...  (UPDATE)

- Edit - NYS & Local Employees Retirement System

- Continue until you get to "Where is this distribution from?"

You will notice that NYSLRS is no longer listed as an option

TurboTax most likely changed your selection to US Government (Including Military)

Select "Other Pensions of New York State and Local Governments"

Answer the remaining question and then go through New York State again to check for errors

I hope this helps.

@vnorman @jnwestlake @gbishop-593 

[gbishop-593]

Thanks for the information. I had sent in my return a second time before seeing this so I assume it will bounce again because I had not changed from the US Govt Military selection.

However, I did see the NYS Teachers Retirement as a selection......so a few questions:

Did the NYS update that I installed this morning (2/19/2021) include the correction for the bug you described below?

If the answer is yes, when I refile after I get the next  NYS rejection....will I be able to select the NYS Teachers Retirement option assuming it shows...or will I still have to select the "Other Pensions...." as you note below.

Would I have been able to see the error if I had gone back to the Wage/Income section after verifying my taxes, but before e-filing?

[Donniemac]

You might still be OK.  Checking the US Government (Including Military) box  should still put your New York State retirement into the correct column.  I don't think it matters which box you check as long as the selected pension is New York State tax exempt. The original issue was the NYSLRS box was not calculating as New York State tax exempt. 

You can double check by clicking on the Forms tab in the upper right hand corner. Scroll down to New York Form IT-201 Page1-2. Line 26 should show your New York State pension amount. If it is blank then it will probably get rejected again. If it has your full retirement amount listed you should be good to go. 

Good Luck!

@gbishop-593 

[Donniemac]

To answer your question about the update, as far as I can tell, the update just removed the New York State and Local Retirement System (NYSLRS) pension as an option and added Other Pensions of New York State and Local Governments. I am assuming that you originally checked the (NYSLR) box and it was rejected, as was mine. I am optimistic that the return I filed today will be accepted. I believe yours will be accepted also.

@gbishop-593 

[vnorman]

I just received an e-mail informing me that my NYS return was accepted. As I mentioned above, there was nothing wrong with my return so I made no changes when it was first rejected. I believe the Turbotax software update fixed whatever the problem was. I hope everyone else has the same result on the second try.

[gbishop-593]

My NYS taxes were accepted. After the initial rejection, I refiled without changes though I did install the TurboTax update.

Thanks everyone on this thread for your comments.

[vnorman]

That's great. I hope everyone has the same happy ending to this story.