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tomjpinto
New Member

Turbo Tax is treating my New York State Retirement income as taxable in New York. Both SS and and my pension are exempt from NYS taxes

 

Turbo Tax is treating my New York State Retirement income as taxable in New York. Both SS and and my pension are exempt from NYS taxes

 

 

 

4 Replies
WendyN2
Level 7

Turbo Tax is treating my New York State Retirement income as taxable in New York. Both SS and and my pension are exempt from NYS taxes

The forms for NYS are not yet finalized and therefore this could be the reason. The IRS, along with States for the most part, are not beginning to accept returns for processing until February 12th. Most States have "stated" that they have not yet finalized all forms required for filing. 

 

State Tax Forms Availability Table

tomjpinto
New Member

Turbo Tax is treating my New York State Retirement income as taxable in New York. Both SS and and my pension are exempt from NYS taxes

I looked at the list of forms not yet finalized for NYS. The issue seems to be on the NY subtractions on page 2 of IT-201, which is final. After reviewing our 2019 return using TurboTax and the actual forms for both 2019 and 2020, I believe there is an actual bug. I'm not a programmer (except for COBOL decades ago - LOL), but it should be easy to check.

I manually entered the correct information on the actual form and it appears to have worked as expected

I'm willing to wait until more forms are updated next week to see if it works correctly on TurboTax by itself

lundela51
Returning Member

Turbo Tax is treating my New York State Retirement income as taxable in New York. Both SS and and my pension are exempt from NYS taxes

its mid march and i'm still having this problem (myself). any suggestions? 

 

LenaH
Employee Tax Expert

Turbo Tax is treating my New York State Retirement income as taxable in New York. Both SS and and my pension are exempt from NYS taxes

TurboTax identified this issue and has updated the software. You’ll need to sign in to your TurboTax account and review your retirement income, as the NY Pension Exclusion entries may have changed. If your pensions are fully exempt, please follow these steps and make sure all the required fields are completed:

  1. Open your return.
  2. Click on Personal Income, under the Personal tab.
  3. Click Edit next to the 1099-R you want to correct.
  4. Enter 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. In addition, keep the NYS distribution amount as the full pension distribution. It will be shown as deducted fully on a later screen.
  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 State Taxes tab above. 
  11. Click on Edit for New York.
  12. The next screen should be your pension summary screen and will show your pension fully deducted.

@tomjpinto

@lundela51

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