NYS retiree question about taxes on pension

[mbbell91421]

As a former employee of the State Univ. of NY, my understanding is that I do not have to  pay taxes on my pension distribution in NYS.  However, Turbotax is somehow showing that I do owe NY taxes.  There's a problem somewhere but I cannot identify where???

[BillM223]

When you enter your 1099-R for the pension, if you are a New York resident, in the screens after you enter the 1099-R data, you will see this screen:

Just check the correct choice, and your pension will be handled in the NYS return.

[mbbell91421]

Hi and thank you.  I did tag that my pension is a NYS ORP but somehow the New York return did not seem to pick that up correctly because the return shows that I owe money to NY that I shouldn't owe as a former state employee?  Something wrong, but I can't figure out what??

[BillM223]

Well, on your IT-201 start at line 1 and go down the list looking for income items. For example, is there something on line 10 (taxable pensions)?

What is the taxable income on line 38? Is it non zero?

Remember that we in the Community can't see your screen nor your private tax data. Please help us help you.

[mbbell91421]

I really, really appreciate your help.  So, line 38 does show a taxable amount.  The amount is the result of the turbotax somehow showing NYS giving me the $20,000. discount that they generously provide to all pensioneers.  Because I worked for the State Univ. of NY, the forms should be discounting my total pension, rather than providing the $20,000. subtraction.  On the question list you mentioned that is at the beginning of the income section in form IT201 for pensions,  I choose the selection for a NYS ORP.   If I were to choose the NYS Education Dept. pension, my tax amount does go to 0.0, but this is not the correct option for me as, tho I worked for the NYS University System, my pension is with TIAA, not the NYS Education Dept.    I'm lost but it clearly seems that this is a turbotax glitch?  Mary Beth

[BillM223]

I see that NYS says that the NYS ORP is non-taxable in New York - "As a New York State Public Retirement Plan, distributions from the SUNY ORP are exempt from New York..."

You have two choices:

1. In the New York interview, you should see a screen called, "Retirement Distributions Summary". Your NYS ORP should be listed in the table. Click on Edit, and on the next screen you should be able to indicate how much of the pension is not taxable.

If that works, then, good.

It appears to me that the pension distribution is listed as income on line 10 of the IT-201, and is then backed out on line 26 on the same form, so it's not taxable in the final result.

2. In the 1099-R interview, just click on "New York State and City Education" and the distribution will disappear. So far as I can see, these pension distributions are not broken out on the NYS return, so it will all be the same to New York State.

[mbbell91421]

Hi Bill,  Thank you so much for your help.  I was beginning to think I was going crazy with this issue.  Anyway, your answer corresponded with what I thought I needed to do.  I would be nice for next year if TurboTax would mend this situation so that those of us in this boat don't spend an excessive amount of time trying to figure out something that should ultimately be pretty easy.  You're the best.  Mary Beth