NY Non-Res, Retired Military, Taxable Income greater than NY Income

Forum|Forum|4 years ago
February 6, 2022
1 reply
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Hello,

I'm retired military and a resident of Mississippi. My wife earned income in NY last year, so we need to file a NY state tax return. We are filing married filing jointly. When I fill out the forms and it brings in our federal amounts, it takes into account my military retirement pay. I adjust the taxable income for NY to the amounts that she earned in NY, but it still uses our federal amount since it's higher. This means it's trying to tax my military retirement.

How to I override this the correct way? There has to be a way to tell NY that my federal return is higher because of my military pay and that it shouldn't be taxed.

Thanks for the assistance!

TurboTax Deluxe Online

LenaH

In the TurboTax software, please make sure that you picked the correct classification in the software if your retirement pay is fully exempt.

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:

Open your return.
Search 1099-R with the magnifying glass tool.
Click Edit next to the 1099-R you want to correct.
Enter the information as shown on your 1099-R.
Answer the questions on the next two screens.
Make sure the correct source of your 1099-R is selected (see below).
Click on From a qualified plan on the screen Was this distribution from a qualified plan?
Answer the required minimum distribution questions on the next screen.
Finish answering the questions about your 1099-R.
Once you are back to your federal 1099-R summary screen, click on the State on the left-hand side.
Click on Edit for New York.
Click Start next to Received Retirement Income on the screen Changes to Federal Income
Click Edit next to your 1099-R.
On the page Pension Deduction Summary, you will see New York deduction for government pensions for the full amount (see below)

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nurplesAuthor

@LenaHThanks for the assistance! I followed the instructions and everything seems correct on my end. The issue comes about when I'm selecting the source of the income. The 1099-R from DFAS is a standard 1099-R and not a CSA or CSF 1099.

By selecting CSA 1099-R, the numbers appear correct. But, since my 1099-R doesn't say CSA (or even "Office of personnel management") should I still select the CSA option? The help section on this page don't address this issue at all.

AmyC

Employee

Correct, Your military pension is a normal 1099-R. You were not civil service or railroad. NY should be taxing only your NY income. Here are the full instructions, 2021 New York Instructions for Form IT-203 Nonresident and Part-Year Resident Income Tax Return. If you determine that need to contact support so someone can see your screen and determine the issue, see What is the Turbo Tax phone number?

Thank you for your service.

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