How can they tax my NYS retirement with state taxes when ite says it’s exempt.

@pdaemstan - We need additional information about your issue so that we can help you.  Below is information about  taxability of pensions for NY.

Your pension income is not taxable in New York State when it is paid by:

• New York State or local government.
• the federal government, including Social Security benefits.
• certain public authorities.

Please use this link to NY Tax:  NY Information for Retired Persons

Of course you DO have to enter the 1099-R in the Federal retirement section..

...AND

...select the source of the NY pension on one of the pages that follows (See picture below)

....AND

The NY distribution amount is not a zero.....it's the same as the value in box 2a (or the Federally taxable amount of box 1 if box 2a is empty or marked "undetermined") .  That value is what is used to be subtracted form NY income if it actually  qualifies as "exempt"....if you put in a zero for that distribution amount, then zero is subtracted from NY income.

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