Since I have been retired for four years and used TurboTax every year. Had no issues with the prior three years returns. Distribution codes have been "2" on all my previous 1099-R forms. I am 100% positive that (Mississippi) Public Employment Retirement is not taxable in the state of Mississippi. This type of retirement is based on years of service.
On the two workarounds you suggest:
I don't like the first one, changing the distribution code from "2" to "7" on the 1099-R (not W-2, that was a typo I suppose). While that does work, it is an official government document, I don't want to change it.
The second one, enter the amount of distribution as a negative number with a description of "Adjustment for pension." Yes, that does work as well. If I had to select one of the workarounds, number two would be my choice.
Additionally, I have used TurboTax for well over 20 years, never have I had to do a "workaround" to properly file my federal or state taxes. This does raise a red flag on the issue.
However, I would like to have the assurance of the TurboTax experts that workaround number two is acceptable to the Mississippi Department of Revenue. Can you answer with a TurboTax 100% guarantee it is acceptable to MDOR?
