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Level 3

Mass state taxes

I just did my taxes.  I have been using turbo tax for years.  I am a retired teacher on a pension.  I never owe state taxes.  All of a sudden this year it is telling me I owe almost 3000.  What have I done wrong,  I've gone over all my numbers.  I haven't done anything different.  No extra income.  Just my pension.  Help!!!!

Employee TurboTax Specialist

Mass state taxes

In years past TurboTax often had the taxpayer make special changes in the state interview, like to indicate that this or that pension is not taxable in the state.


Now, as often as not, TurboTax has moved these questions to the screens that follow the entry of the 1099-R on the federal return.


Go to Federal->Wages & Income->Retirement Plans and Social Security->IRA, 401(k), Pension Plan Withdrawals (1099-R) and click on the Start or Revisit button. Edit your 1099-R for your teachers' pension in order to open the interview about it. A few screens after you enter the 1099-R information, IF you indicated that you were a Massachusetts resident in the My Info section, then you will see the following screen:



As you can see here, you have the opportunity to indicate that this pension is from the Massachusetts State Teachers Retirement System (or whatever is appropriate). Note that the name of this pension in my example above is "MA teachers pension" - this is the name on the 1099-R and is not preprinted on the screen.


Thus, when you get to the state return, this pension is automatically excluded from state income.

Level 2

Mass state taxes

I am a New York State Teacher with a 1099-R and a pension that also is not taxable in New Yrk state. I am a NY state resident. Will this advice work for me? 

Level 11

Mass state taxes

It should but the questions will be NY state specific