Exempt tax

If your 1099-R is tax exempt from NYS income tax, please make sure that you picked the correct classification in the TurboTax. 

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 follow these steps and make sure all the required fields are completed:

1. Open your return.
2. Search 1099-R in the search box.
3. Click the Jump to 1099-R on the top of the search results. 
4. Click Edit next to your 1099-R.
5. Continue past the information entered. 
6. Answer the questions on the next screens.
7. Make sure the correct source of your 1099-R is selected. 
8. Answer the on-screen instructions. 
9. Once complete, click on State on the left hand side. 
10. Edit your New York resident return.
11. Continue until you get to the page You Just Finished Your New York Return.
12. Click on Start or Update to Adjustments to Federal Income under Changes to Federal Income. 
13. Click on Received Retirement Income under Wage and retirement adjustments.
14. Click continue.
15. Enter your pension exclusion.
16. Click continue.
17. Your deduction should show as zero amount taxable to NYS on the Pension Deduction Summary page.