NYS Pension Exclusion

[thetaxdoctor1]

Hello,

We got a letter from NYS saying that taxpayer was not able to take the pension exlcusion of 20,000.

The pension is not a NYS Retirement System pension so code G is not in the State Code box.

It is a normal distribution (number 7).

Why would ProSeries take the exclusion anyway?

[ljr]

check that you have the birthdate input correctly. It would calculate based on age - the $20K deduction is for over 59 1/2  

Are you sure that it says not eligible? I just had a client fax the letter they got yesterday also on the 2019 pension exclusion

I see a lot of these letters - there are some NYC pensions/annuities that are not administered by the city of ny and even though the 1099-R say not taxable to ny (use the code G) the letter comes from NY saying it is not a gov't pension and to look at the $20K pension exclusion. 

[qbteachmt]

"Why would ProSeries take the exclusion anyway?"

Because there are two different exclusions. One is based on source and has no limit, and one is based on age and source and has a llimit.

"If your pension is taxable to New York and you are over the age of 59 ½ or turn 59 ½ during the tax year, you may qualify for a pension and annuity exclusion of up to $20,000."