Hi @BillM223
My Rollover is a 401k Rollover to a Traditional IRA account; in this case I had two Rollovers / two 1099-Rs. These Rollovers are non-taxable distributions and is clearly and correctly shown on the 1099-R forms (which I checked the entry into Turbo Tax multiple times). This is not a Pension Fund distribution scenario. [It appears that Pension Distributions and 401k Rollovers both use the 1099-R Form.]
This issue presents itself when I "submit" for electronic filing. The software does another check and comes up with a page with the Header "Check This Entry"
The message states:
Form 1: Tax-Exempt Pension should not be entered directly on Form 1 for State Electronic Filing. You should enter the information on the Federal Return, Form 1099-R and/or use the Pensions and Annuities Smart Worksheet to make any tax-exempt adjustments.
Then there is a line that reads:
Tax-Exempt Pension [with a box that has the number "0"]
Below it is a scrolling window showing what appears to be a worksheet for Massachusetts Resident Income Tax Return
with the section : Pensions and Annuities Smart Worksheet
It list my two Payer's Names in the column for "** I have confirmed that the pension amount is correct" is checked off . The column for Pension Amount reflects "0" for both lines.
Below that box is a section for Pensions and Annuities [#4 is referenced on left].
For the line for "Tax-exempt portion of pensions and annuities - the box has a blue background and the number "0" is in red. To the left of the blue box is a graphic "+" - when selected it pops up another overlay box for supporting details in which there are empty lines for description and amount. I tried entering "Rollover" and the amount of "0.00" . But no matter what is entered I still am unable to submit. I will hit continue, but the software does another check and brings me back to this Check This Entry page again and again and again.
After several tries, I also tried entering "G" for Tax-Exempt in the Type column (it was the only logical entry from the drop down option) , but that didn't solve the issue either.
It would be appreciated if you could advise as what I need to do to get this entered correctly for the state return. I don't understand why, from a software perspective, Turbo Tax hasn't programmed in what needs to be done automatically. This is a lot of troubleshooting and manual workaround effort for a paid product. I have done rollovers in past years and never came across this problem.
