Client and Wife both worked for NYS, wife 1099-R info shows as other pension and annuity income on NYS return and should show as exclusion

That works

Thank you

Some older NYS employees may have tier 1, tier 2 or tier 3 pension plans, If they have these older non taxable pensions you use a code G in the state code box so as not to waste the NYS $20,000 Pension, IRA ect exclusion.

Yes, state only, nothing to do with the federal.

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

In addition, income from pension plans described in section 114 of Title 4 of the U.S. code received while you are a nonresident of New York State is not taxable to New York. 

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. This exclusion from New York State taxable income applies to pension and annuity income included in your recomputed federal adjusted gross income. For more information on the pension exclusions and other benefits for retired people