BillM223
Expert Alumni

Retirement tax questions

"My Massachusetts Teacher's Retirement pension pay out is placed in line 4B when it should be on line 5B as a pension NOT an IRA distribution."

 

When you entered the 1099-R into TurboTax for this pension, did you accidentally check "This is an IRA" box? It is unlikely that TurboTax assigned your 1099-R to the wrong line, because everybody would have noticed this.

 

"It also screws up my MA taxes because MA does NOT tax teacher's pensions, but it gets carried over from the Federal as a TAXABLE IRA and gets taxed!"

 

In many cases, when you have entered your state of residence (like MA) and you have correctly indicated that this 1099-R is a pension and not an IRA, then TurboTax often (not always, but often enough to go look) asks you in the screens after you have entered the 1099-R data what the source of the pension is. This should be your opportunity to tell TurboTax that this is MA Teacher's Retirement.

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