NYS Pension Exclusion

[SasQuaTch838]

My NYS pension is exempt from NYS income tax, but I followed the Turbo tax Update and I can't adjust or changethe Received retirement income section on my State return. Also there is no Let's Check It Over screen. Why?

[LenaH · Accepted solution]

After the input of your 1099-R on the federal screen, you must select the source of your pension correctly. If your pension is from New York State, the first category should be selected. 

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

To review your 1099-R and get it classified as exempt, please follow the instructions below:

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. Click Edit next to the 1099-R you want to correct.
5. Continue past the information entered. 
6. Answer the questions on the next screens.
7. Make sure the correct source of your 1099-R is selected. Please see screenshot below.
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. Follow the on-screen instructions. 
15. Your deduction should show as zero amount taxable to NYS on the Pension Deduction Summary page. Please see the screenshot below. 

[SasQuaTch838]

This problem was solved. However both my Federal and my State tax returns couldn't be E-filed. I spent 2 hours+ with Jill from Turbo tax trying to get a Solar and Wind carryover off my State return w/o success. I do not have Solar and Wind in any shape and form. The Federal return was rejected 3x because they didn't accept my AGI. I mailed both returns.