When you enter this 1099R in the federal return make sure to put MA in the state ID. Then you will see a page about Massachusetts Special Handling (see screenshot). If you complete this it will carry to the Massachusetts return and it will not be taxable. Here's how to get there:
- Federal
- Income & Wages
- Retirement
- 1099R...update
- Edit the 1099R... make sure MA is in box 13...continue
- You will see the special handling page after a couple of clicks
If you have more questions about this, ask in the comment box below.
