@Willie38 wrote:
I am aware of this. When entering retirement income into the TurboTax federal form I failed to check the box that said the income was for a government source (AF retirement). Therefore, The full amount was passed to the Hawaii return as fully taxable. I have already filed both federal and state returns and have paid the state tax. How do I submit a correction. Must I first submit a corrected federal return and then a corrected state return, or can I just correct the state return?
First, is the pension on Line 13 of your Hawaii return (N-11)? If so it was *deducted* from your Federal AGI and was *not* taxed; thus no amendment is necessary. (Hawaii exempts noncontributory private pensions just like government & military pensions; the IRS taxes both.)
If it's NOT on your N-11 at all (other than as part of Federal AGI), THEN you may have to amend your returns. The way TurboTax is set up, you'll probably have to start "amending" your Federal return so you can change the 1099-R to reflect the correct category; then go to your Hawaii return and amend it (the change in your 1099-R should carry over automatically). At the end, you may be presented with both Federal & Hawaii amended returns; but since ALL amended returns are filed on paper and the 1040X should show no changes, ignore it and just mail in the Hawaii amended return.
EDIT 04/19/21: TurboTax now allows e-filed amendments to Federal returns in many cases; I had to file one myself this year. However, *IF* you follow this method you can still elect a paper amended return, ignore the 1040-X, and mail in the HI return. Or, you can follow ReneeM7122's more recent response and amend your state return separately from Federal; my method, however, should make the state return easier to amend because a lot of what the state program does with pensions comes from answers you gave while entering the 1099-R on the Federal side.
