Certain types of pensions are not taxed in Massachusetts. TurboTax may be asking if you need to make an adjustment to the Pension Income you entered in your Federal return.
If your pension is not taxable in Massachusetts, enter the amount that is excluded in Massachusetts. If this does not apply to you, go back to your original 1099-R entry and review that section.
Per Expert @ReginaM:
"According to the State of Massachusetts instructions these pensions are non-taxable:
- Pension income received from a contributory annuity, pension, endowment or retirement fund of the U.S. Government or the Commonwealth of Massachusetts and its political subdivisions.
- Pensions from other states or its political subdivisions which do not tax such income from Massachusetts or its political subdivisions may be eligible to be deducted from Massachusetts taxable income.
- Noncontributory pension income or survivorship benefits received from the U.S. uniformed services (Army, Navy, Marine Corps, Air Force, Coast Guard, commissioned corps of the Public Health Service and National Oceanic and Atmospheric Administration) are exempt from taxation in Massachusetts.
- Massachusetts state court judges who were appointed on or after January 2, 1975 are participants in the Massachusetts contributory retirement system and their pensions are nontaxable."
Click this link for more info on Taxable Pensions in Massachusetts.
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