When a retired state worker receives their pension in Maine a portion of the taxable amount shown in box 2a on the 1099-R is reduced by subtracting the box 16 State Distribution amount. The difference between box 2a and 16 is called the Pickup and reduces the taxable pension for state purposes only.
Instructions in Turbo tax appear to say the calculation is box 2a - box 14 (state tax withheld). This will produce a significant reduction in the taxable income for the state return for most recipients. I think this is wrong in Turbo tax.
Am I looking at this correctly?
