I took a look at the MA Instructions;
"Traditional IRA Distributions are taxable for both Massachusetts and federal tax purposes if the distribution exceeds the amount of IRA contributions that were previously subject to tax."
Here's how I read it.
MA has its own rules for IRA distributions differing from IRS.
This means the standard trick -- "Backdoor" Roth IRA contribution -- in MA may not be tax free.
If you have an empty Traditional IRA and attempt a backdoor Roth IRA contribution via conversion, it will be taxable in MA.
Reason: your Traditional IRA basis (which came into existence only momentarily and vanished ) had not been previously taxed by MA.
Therefore, TurboTax is doing it correctly.
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