NY Pension

Forum|Forum|2 years ago
January 11, 2024
2 replies
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My 1099R has zero amounts in the fields for NY state distribution (and withholding), but Turbo Tax still brings the federal distribution amount into the NYS return as income and calculates tax on it. I have used TT for years and it has never done this. Can anyone help please?

Best answer by SteamTrain

The way it has worked in past years (haven't checked this year), is that the full distribution amount is brought along as a NY distribution.

Then you get to make a selection of one of the NY retirement plans which is not taxed by NY (See below).

Then, the software knows to deduct the "NY Distribution" from the Federal income value, to arrive at a modified NY income amount. IF you force re-set the NY distribution amount to zero, and the NY exempt-pension type has been selected, then the software subtracts zero from the Federal income....so don't do that.

mglauner

Normally any 1099R Federal amounts distributed to you are also automatically transferred to your state return, even if not shown on the 1099-R.

If you indicate that your pension is non-taxable when you enter it in your Federal return (state employee pension, for example), it will not be taxed at the state level. Check your 1099-R entry to be sure you indicated the pension source that makes it non-taxable in New York.

Otherwise, as you proceed through the NY interview, you will be able to indicate that your pension is non-taxable, or qualifies for a 20K exclusion.

Here's more info on New York Pension Income.