NY State Tax Return

[rhcolton73]

I have received a notice from the NY State Tax service that I owed money on my 2021 tax return. They informed me that a pension and annuity exclusion is limited to $20,000. In 2021, I used the Turbo tax on my computer and it failed to recognize the $20,000 exclusion limited and excluded all of my and my wife's pension income. The result was a higher NY adjusted income. I checked my 2022 tax return (where I used the online version) and found that the mistake was made again. ( It appears to have been corrected in the 2023 tax year.)

Please advise

[Opus 17]

In NYS, government pensions are completely excluded, while pensions and other retirement accounts from private employers or personal accounts get a $20,000 exclusion.  So the first question is, did Turbotax incorrectly apply a full exclusion, or did you accidentally indicate this was a government pension?

You always owe your own correct tax.  If Turbotax made a calculation error, Turbotax is supposed to cover penalties and interest.  You must report the situation within 60 days of getting a tax notice, and you pay what you owe as soon as you can, because even if Turbotax accepts your claim, they won't cover extra interest or penalties if you delay paying.  Here is how to file a claim,

https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-100-accurate...