Re: NY State Pension exclusion

Onehand

My client received a 1099-R from New York State Teachers' Retirement System. I entered it into her federal return. When I went over to her NYS tax return (IT-201), she thought that the entire taxable amount ($22,550) from that 1099-R would populate to line 26, which makes sense. But Proseries did not populate that line, but instead populated $20,000 on line 29. Did I miss a checkbox somewhere?

lbones

Yes, put a G in the state use box under the Payer State Number. G for Government. Then it will eliminate it from state taxes.

Camp1040

The 1099-R needs a code G entered on the state use code, if the pension is not taxable to NYS or else only the $20K exclusion will flow to line 29.

MICHAELMARS

This does not work for me in ps prof. I have to exclude the income on the NY return pension worksheet. Entering G doesn't do anything.

Camp1040

If code g is not working on the 1099-r worksheet and it 201 is only subtracting $20,000 pension exclusion then possibly that pension belongs to a teir where all of distribution are not excluded from tax. I would read the 1099-r input screen very carefully to be sure code g is going in the correct box.

Onehand

That's what's happening to me also, and it's still populating line 29 with $20,000

Giammusso

From your NYS return, go to the Pen Ann IRA Wks. Click on the pension/IRA you need to exclude and click the box that says "Qualifies for Government Exclusion." The pension amount will be excluded from the taxable income for NYS. You will need to do this for each pension you need to exclude.

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Onehand

Thank you!

MICHAELMARS

iI know that, but someone said you can enter G on state code on the federal input. that doesn't work for me.