Question

New York State Retiree 1099-R Can't enter info into Turbo Tax

Forum|Forum|5 years ago
February 1, 2021
4 replies
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I can't enter what is written on my 1099-R into Turbo Tax boxes 14-16. The only thing I can enter is State/Payer State Number. My 1099-R box 14 states EXEMPT. No Info for State ID (1st box 15) I can enter State/Payer's State Number and on box 16 I have NY, and Turbo Tax requires a number. I entered this in as I thought I should yesterday and I completely screwed up my NY State Return. Any suggestions?

LenaH

Your 1099-R might say NYS EXEMPT if your 1099-R distribution is less than $20,000 and is a federal, NYS state or local government pension or IRA. Per NYS, taxpayers over age 59 1/2 can deduct up to $20,000 of certain federal, NY state or local government pensions and certain IRAs on their New York return. If married filing jointly, each spouse may deduct up to $20,000.

Please enter the information in the 1099-R entry form:

For Box 14 (State tax withheld), do not enter EXEMPT. Enter $0.
For Box 15a (State), choose NY.
For Box 15b (State number), enter as shown on Form 1099-R.
For Box 16 (State distribution), enter the distribution as shown in Box 1 (Gross distribution).

If it is non-taxable in NYS based on the guidelines above, please follow the on-screen instructions and answer the questions pertaining to your 1099-R. In addition, please confirm it is being deducted out of your NYS income.

Please follow these steps in TurboTax to confirm:

Open your return.
Click on State in the left hand column.
Click Edit next to your resident return.
Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
Scroll down to Wage and retirement adjustments.
Click Start next to Received retirement income.
Continue to the screen Governmental Pension Exclusion.
Enter $20,000 (or your distribution if less than that amount) for the question, Did you receive a pension or other distribution from a NY State or local government pension plan or federal government pension plan?
The next screen will show your pension deduction summary. Only $20,000 (or your distribution if less than that amount) should be deducted from your pension.

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B

bgrossm1

My understanding is that NY state/local pension exclusion is not limited to 20K. It is not state taxable, period. What works for me on 1099R (after much trial and error) is:

Box14 - leave blank

Box15 - leave as is

Box 16 - make it 0.

Also check the NY Pension/Annuity worksheet to make sure everything is as it should be.

macuser_22

@bgrossm1 wrote:

My understanding is that NY state/local pension exclusion is not limited to 20K. It is not state taxable, period. What works for me on 1099R (after much trial and error) is:

Box14 - leave blank

Box15 - leave as is

Box 16 - make it 0.

Also check the NY Pension/Annuity worksheet to make sure everything is as it should be.

If no tax withheld in box 14 the leave all boxed 14-16 BLANK.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

G

grandpaknei

Irene2805 (Employee Tax Expert) mentioned you in a post! Join the conversation below:
Re: Form 1099-R states NYS withholdings cannot be greater than or equal to gross distribution.How...
On your 1099-R, since the NY pension is not taxable, leave boxes 14, 15, and 16 blank. This should prevent the error messages and let you e-file your return.
Grandpaknei:
Thanks Irene. Since Turbo Tax filled in the State and State ID automatically I did not think to blank out box 15. Also shame on me for not noticing that the state id number provided didn't match the one on the paper 1099-R. I have for years left 14 and 16 blank based on Turbo Tax help notes. I hope the notes are as clear as you were: if box 14 says exempt: “leave boxes 14, 15, and 16 blank.”

To be specific, what worked for me was to go to forms immediately upon starting TurboTax and blanked out those boxes in the 1099-R and was then able to proceed with filing without any other re-entry of data.

I

Irene2805

Thanks for sharing the info!

I

ILDA CANTON

How can I enter that my income is exempt from nys taxes

Critter-3

Your 1099-R might say NYS EXEMPT if your 1099-R distribution is less than $20,000 and is a federal, NYS state or local government pension or IRA. Per NYS, taxpayers over age 59 1/2 can deduct up to $20,000 of certain federal, NY state or local government pensions and certain IRAs on their New York return. If married filing jointly, each spouse may deduct up to $20,000.

Please enter the information in the 1099-R entry form:

For Box 14 (State tax withheld), do not enter EXEMPT. Enter $0.
For Box 15a (State), choose NY.
For Box 15b (State number), enter as shown on Form 1099-R.
For Box 16 (State distribution), enter the distribution as shown in Box 1 (Gross distribution).

If it is non-taxable in NYS based on the guidelines above, please follow the on-screen instructions and answer the questions pertaining to your 1099-R. In addition, please confirm it is being deducted out of your NYS income.

Please follow these steps in TurboTax to confirm:

Open your return.
Click on State in the left hand column.
Click Edit next to your resident return.
Click Update or Start next to Adjustments to federal income on the screen You Just Finished Your New York Return.
Scroll down to Wage and retirement adjustments.
Click Start next to Received retirement income.
Continue to the screen Governmental Pension Exclusion.
Enter $20,000 (or your distribution if less than that amount) for the question, Did you receive a pension or other distribution from a NY State or local government pension plan or federal government pension plan?
The next screen will show your pension deduction summary. Only $20,000 (or your distribution if less than that amount) should be deducted from your pension.

P

pvreilly

I can't enter what is written on my 1099-R into Turbo Tax boxes 14-16. The only thing I can enter is State/Payer State Number. My 1099-R box 14 states EXEMPT. No Info for State ID (1st box 15) I can enter State/Payer's State Number and on box 16 I have NY, and Turbo Tax requires a number.

DoninGA

@pvreilly If there are no state taxes withheld in box 14 on the Form 1099-R, then leave boxes 14, 15, and 16 blank (empty).

After you do this and still receive an error then delete the Form 1099-R and re-enter manually to clear the error.

B

bgrossm1

This issue , ie the inability of TurboTax to accomodate NY state tax information, has been identified repeatedly over several years. Yet TurboTax has yet to resolve the issue. The only solution is to fill out the appropriate form manually. Sort of defeats the purpose. Why hasn't TurboTax resolved this?