Pension and annuity income exclusion on NY state IT201 form

[aolc124]

I had a CSA 1099R Statement of Annuity Paid for 2021 with gross distribution $26560 and taxable amount 26263.52. That's my regular payment monthly after I retired. I have two questions:

1. Do I check the source as 'None of the above'? or 'US Government'?

2. When I review the NY State tax form IT-201, line 29 Pension and annuity income exclusion, isn't I suppose to get $20,000 subtraction from there? The turbo tax doesn't show that when I preview the form? Is there a bug in the software ? Please advise. Thank you!

[FangxiaL]

If you are a federal retiree, and that is your pension income, you should select US Government, because the federal pension is exempt from NYS income tax. 

[aolc124]

Thank you for your respond. 

what about the following question?

When I review the NY State tax form IT-201, line 29 Pension and annuity income exclusion, isn't I suppose to get $20,000 subtraction from there? The turbo tax doesn't show that when I preview the form? Is there a bug in the software ? Please advise. Thank you!

[FangxiaL]

To qualify for the $20,000 exclusion, a taxpayer has to be at least 59 1/2 years of age.

Here is what I see on my screen: 

[aolc124]

I am not the age yet but my husband who's getting the annuity is 62 years old so he should be qualify. We filed married joint return. Isn't that's something automatic deduct? His sister did married separate in turbo tax software too and somehow that amount didn't kick in when she did the state. When she brings it to the tax people to do the tax, it's there so I wonder if it's a glitch from Turbo tax or if there's somewhere we need to check for the age or something. Any Idea?

[LenaH]

In the TurboTax software, please make sure that you picked the correct classification in the software. Please select None of the above on the page Where is your distribution from? 

Per NYS, taxpayers over age 59 1/2 can deduct up to $20,000 of certain pensions and certain IRAs on their New York return. 

The individual receiving the pension must be 59½ years of age or over. In addition, the pension and  annuity income must be:

• included in federal adjusted gross income (FAGI);   
• received in periodic payments (except IRA or Keogh);  
• attributable to personal services performed by the individual before their retirement; and  
• from an employer-employee relationship or from an employee’s tax-deductible contributions to a retirement plan.

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

1. Open your return.
2. Search 1099-R with the magnifying glass tool. 
3. Click Edit next to the 1099-R you want to correct.
4. Continue past the information as shown on your 1099-R. 
5. Answer the questions on the next two screens.
6. Make sure the correct source of your 1099-R is selected. Select None of the above. 
7. Click on From a qualified plan on the screen Was this distribution from a qualified plan?
8. Answer the required minimum distribution questions on the next screen.
9. Finish answering the questions about your 1099-R.
10. Once you are back to your federal 1099-R summary screen, click on the State on the left-hand side.
11. Click on Edit for New York.
12. Click Start next to Received Retirement Income on the screen Changes to Federal Income
13. Click Edit next to your 1099-R.
14. On the page Pension Deduction Summary, you will see a New York deduction for $20,000. 

@aolc124