incorrect NYS pension exclusion

Forum|Forum|5 years ago
June 20, 2020
3 replies
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2019 tax year, State University of NY pension in NYS return. Entered specific amount to be excluded in Governmental Pension Exclusion input. That specific amount is over $20,000. Pension Deduction Summary page then shows that specific amount on the line for 'New York deduction for government pensions' *and* $20,000 on the line 'New York deduction for other pensions'. Two deductions for the same pension entry? The total deduction ends up being almost 2X of the pension amount itself!

Best answer by BillM223

*The Normal Case*

When you enter that you are a New York state resident, after you enter your 1099-R for your pension, there will be a series of screens. One screen will ask you to Select Your State.

When you select New York, the next screen will ask "Where is this distribution from?"

This will give you the opportunity to select the source of the pension. If you have a pension that qualifies for exclusion in New York, it will be removed from your New York return.

*Your Case*

Did you also enter the $20,000 as a subtraction or exclusion while inside the New York interview itself? If so, you should go back and remove it. The data entry immediately after the 1099-R is normally all you need to do.

BillM223Answer

*The Normal Case*

When you enter that you are a New York state resident, after you enter your 1099-R for your pension, there will be a series of screens. One screen will ask you to Select Your State.

When you select New York, the next screen will ask "Where is this distribution from?"

This will give you the opportunity to select the source of the pension. If you have a pension that qualifies for exclusion in New York, it will be removed from your New York return.

*Your Case*

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mrunsky

I'm in the same situation. NYS return automatically deducts the $20,000. I never entered it manually. I did select that the pension is from NYS education on the federal return. I can't seem to find how to remove the $20,000. I'm going over this return many times, and the worksheets, but can't find what is incorrect. It all looks correct to me.

jny

I have the exact same problem and can not figure out how to remedy it. I only entered my NYS pension. I did not enter a $20,000 exclusion and I can't get rid of it

Mamselle

Same problem for me. I filed for an extension hoping somebody (Turbo Tax, are you listening?) will fix this.

Sunshine101210

I am doing our taxes for my husband and I. He is a retired NYPD police officer and his pension shouldn’t be taxed by NY, yet turbo tax is saying we owe thousands of dollars to NYS because of his pension. How do I fix this?

DaveF1006

@Sunshine101210 Please follow the suggestions offered by SandraM her her awesome Turbo Tax post.

"Here are the steps to enter your exempt New York State employee pension:

On the Federal Income Tax portion:

Go to federal>income and expenses
Scroll down to Retirement Plans and Social Security
At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
Enter your 1099-R or if you have entered it, click on Edit then Continue
Answer the next questions until you get to the Where Is This Distribution From? screen
Select the source New York State Employees and enter the information requested:
Click on Continue
Click on From a Qualified Plan
Continue answering the questions

On the New York State return portion:

At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
At the Retirement Distributions Summary page, click on Edit New York State
If no additional information is required, click on Continue
Click on Done