Turbo Tax and NYS beneficiary IRA deduction

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Topic Author
kodiac
Posts: 12
Joined: Tue Jan 12, 2016 12:27 am

Turbo Tax and NYS beneficiary IRA deduction

Post by kodiac »

Hello,
I'm newly experimenting with Turbo Tax. All looks good except I have a beneficiary IRA where I can deduct 10K from my NYS tax form. TT is, however, entering a 20K NYS tax exemption, WHile 20K is allowed by NY, I share the IRA so can only take a 10K max deduction. I wasn't able to see how to edit this. Googled but could not find guidance. Appreciate advice.
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Duckie
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Re: Turbo Tax and NYS beneficiary IRA deduction

Post by Duckie »

kodiac wrote: Sun Mar 19, 2023 3:44 pm I have a beneficiary IRA where I can deduct 10K from my NYS tax form. TT is, however, entering a 20K NYS tax exemption, WHile 20K is allowed by NY, I share the IRA so can only take a 10K max deduction.
I found this on a TurboTax discussion board.
And the official IRS information under nominee which looks really complicated.
Topic Author
kodiac
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Joined: Tue Jan 12, 2016 12:27 am

Re: Turbo Tax and NYS beneficiary IRA deduction

Post by kodiac »

Thank you Duckie,
From what I understand, the insurance distribution is different in that the two parties are splitting a 1x insurance payment. For me, I've been taking this beneficiary IRA distribution for apx 20 yrs. It's taxable as income on the federal return. NY state allows a max 20K deduction but that max must be divided by the number of IRA beneficiaries (2 in my case), thus a 10K annual deduction off the NY return. TT seems to know about NY 20K deduction and is doing the max though, I believe, I did indicate somewhere on the federal return questions that it is shared with one other. NY already dinged me years ago when a CPA declared the entire 20K so don't want to go thru that again!
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teen persuasion
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Re: Turbo Tax and NYS beneficiary IRA deduction

Post by teen persuasion »

What about this? https://ttlc.intuit.com/community/retir ... /00/246485
Scroll down to the last reply on page 1 by BarbaraW22. Not the current year, but hopefully points you in the right direction.
Topic Author
kodiac
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Joined: Tue Jan 12, 2016 12:27 am

Re: Turbo Tax and NYS beneficiary IRA deduction

Post by kodiac »

Thank you, Teen. Unfortunately, while that discussion comes close, it does not provide a solution (both beneficiaries in our case are from NY state and one possible solution give didn't work for the 2020 writer nor for me.) The mystery continues!
MarkNYC
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Re: Turbo Tax and NYS beneficiary IRA deduction

Post by MarkNYC »

kodiac wrote: Sun Mar 19, 2023 3:44 pm Hello,
I'm newly experimenting with Turbo Tax. All looks good except I have a beneficiary IRA where I can deduct 10K from my NYS tax form. TT is, however, entering a 20K NYS tax exemption, WHile 20K is allowed by NY, I share the IRA so can only take a 10K max deduction. I wasn't able to see how to edit this. Googled but could not find guidance. Appreciate advice.
In the State Tax section of Turbo Tax, go to the part where the IRA income is listed and enter the date of birth of the deceased IRA owner, and enter 50% as "Your percentage share of the total distribution."
Topic Author
kodiac
Posts: 12
Joined: Tue Jan 12, 2016 12:27 am

Re: Turbo Tax and NYS beneficiary IRA deduction

Post by kodiac »

Thank you, Mark. I'll give that a try. Keeping my fingers crossed!
BarbBrooklyn
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Location: NYC

Re: Turbo Tax and NYS beneficiary IRA deduction

Post by BarbBrooklyn »

Kodiac, when I've had seemingly insoluble problems with TT, I have had good luck calling their customer service number. They can log in to your return and advise on fixes.
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."
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