1099-R Code T as a NYS Deduction?

[RAYJDEM]

I entered a  2024 1099-R with Code T @ $65,00.  The NYS program took it as a Itemized Deduction, but changed the amount to $66,637.

Why was this done?

[Vanessa A]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[RAYJDEM]

How do I supply the Token #?

Do you want me to give it here in the post? 

[RobertB4444]

Yes.

@RAYJDEM 

[RAYJDEM]

[phone number removed]-98641386

[Vanessa A]

Are you using the online version or the desktop version?  If you are using the desktop version, a work around is go to form IT-196 and enter $65,000 on line 24. The number here is a direct entry

[RAYJDEM]

I am using the desktop version and have already filed the return without noticing it had changed my entry.

Why did it add $1,637 to the amount?

This doesn't make any sense in what I can see.

The State is questioning the deduction.

[Vanessa A]

The $1,637 is coming from your Roth IRA Contributions prior to 2024 minus your IRA distribution. 

We are going to further investigate this to see if there is a reason why this happened.  If this turns out to be an error, you can submit a claim to TurboTax under the accuracy guarantee policy. 

 How do I submit a claim under the TurboTax 100% Accurate Calculation Guarantee or 100% Accurate, Exp...

(Edited 4/30/2025 @ 7:37AM PST)

@RAYJDEM

[Vanessa A]

Diving deeper into your return, it appears as though when you answered the questions AFTER the 1099-R entries that you selected NO to do you have any IRA's open.  You then have a contribution amount still listed that is greater than your distribution amount reported on the 1099-R.  

This leaves you with a loss of $66,637.  ($131,637-$65,000) IF you no longer have ANY IRA open. 

If you took a total distribution from your IRA and have no open IRA's, then this loss is correct and you are entitled to a deduction on your NY return in the amount of $66,637 as calculated. 

If you DO still have open IRA's, then you would need to amend your return to  note that this is not a loss.  It does not have an affect on your federal return, however it does drastically reduce your state refund meaning you would need to pay back the excess refund you received. 

IF you DO still have IRA's open and you  need to amend your return, once you start the amend, you will go to edit next to the 1099-R, walk through all the steps then KEEP going until you come to the question asking if you still have open IRA's. And YES.  Since your amended return would have returned to zero, you should see a tax due amount which is the repayment of the excess refund you received.  

How do I amend my state return?

@RAYJDEM