This week, I received a letter from the comptroller of Maryland that we incorrectly claimed a pension exclusion in 2020. We have been charged $594.91 in interest for this error!!! We have been using TurboTax for decades and have never had a problem like this. I compared our 2019 and 2020 state returns and noted that TurboTax did not exclude any pension income in 2019, but did exclude $33,100 in pension income in 2020, the first year that we were both 65 years or older. Digging deeper, I found that Maryland does NOT allow this exclusion on foreign pensions. We have always completed a IRS Form 4852 for this pension because we can't receive a 1099-R from a foreign entity. IRS has accepted this substitute form for years. My returns for 2021 and 2022 have this same error. I expect to be charged interest for these TurboTax errors. Has anyone else had this problem with TurboTax Maryland tax returns?
