I got a letter from Maryland that I owe back tax - the reason being the pension exclusion calculation. I think the problem is Line 1a of the Pension Exclusion Computation Worksheet - it pulled annuity information from my Fed return/1099-Rs, and the amount pulled is higher than the social security amount on line 3 so this resulted in a pension exclusion for my social security benefit that Maryland disputes. From what I read, line 1a should be pensions from an employee retirement system only. I have 3, and they are:
1. From 1099-R Line 7 = 7, IRA/SEP/SIMPLE box is checked (so this is an IRA)
2. From 1099-R, Line 7 - F, IRA/SEP/SIMPLE box is not checked (charitable gift annuity)
3. From 1099-R, Line 7 - F, IRA/SEP/SIMPLE box is not checked (charitable gift annuity)
So to me it appears Turbo Tax should not have pulled these amounts over to the Maryland Computation Worksheet line 1a, right? Isn't this a Turbo Tax bug? It's been doing it for years that way too :(
