DaveF1006
Expert Alumni

Retirement tax questions

It depends. When you enter the the information in your federal interview, be sure to indicate that this is a qualified plan when it asks what kind of a retirement plan it is. This is the first step.

 

The second step requires you to do the following.

  1. Select state in the left pane of your return if using Turbo Tax Online If using the software, select the state tab.
  2. Once you select Alabama as the state, your information from your federal return will populate in your Alabama State return.
  3. Now you will navigate through the screens until you arrive at a screen that mentions About Your Retirement Distributions.
  4. You should see your retirement distribution listed and select edit.
  5. Next you will see a list of distributions that are qualified to be excluded. If you see your pension listed, there select "yes." One of the options I see is payments from a Defined Benefit Retirement Plan
  6. The next screen will show that it is excluded as income from your Alabama return.
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