I live in NY and work for the state. I received a return of pension contributions from NYSLRS pension system. Is this taxable income in NYS?

Forum|Forum|2 years ago
April 9, 2024
2 replies
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The 1099-R for this income says EXEMPT under the NYS taxes section but Turbotax is adding this as taxable NYS income. I have tried making adjustments to Federal income in the NYS section but when I attempt to edit this 1099-R, it tells me no additional information is needed. I have already checked the box to indicate this is from a NYS government pension system. Should I override the NYS form instead?

TurboTax Online

mglauner

Yes, in the New York state interview, you will have the opportunity to EDIT your Retirement Distributions to indicate the NY Taxable Amount.

You may find that TurboTax has already set this 1099-R to $0 for NY.

@dana-coyle

dana-coyleAuthor

@mglauner When I attempt to edit the Retirement Distributions in State, it tells me Turbotax doesn't need any further information about this distribution. There is no way to edit it here. I entered this 1099-R for last and watched it increase my NYS Tax Due. I can't find a way to correct this. Other than going to the forms and manually overriding the worksheet?

dfault

To get Turbotax to recognize the NY pension exemption, you need to use the interview method for Your 1099-R. You can enter all the information on your 1099-R, but will still have to go through the interview method to enter the exemption. Turbotax will not except that your New York pension is NY tax exempt when entering the exemption manually.