How does #14 on 1099-R for NYS retirement allow for inclusion of EXEMPT

You will do this on your federal return after you have entered your Form 1099-R for your New York pension. The information will flow to your New York state tax return.

NYSLRS pensions are not subject to New York State or local income tax.

After you enter your Form 1099-R for your New York State retirement, you will have follow-up questions about your distribution.

On your TurboTax screen that says, "Where is this Distribution From?" You will select  "Other Pensions of New York State and Local Governments." And you will finish answering any follow-up screens.  This information will flow to your New York State Tax return and your pension will be tax exempt.

This screen will look like this:

Click here for NYS Taxes and your Pension