After entering the Code 7 in Box 7 of my 1099R for my Roth conversion; the next TurboTax scree asks: "Where is your distribution From?"
Do I choose "C" or "N" in the options below?
If I choose "N"; I incur Mi-State Taxes on my Conversion
If I choose "C"; I am returned my Mi-State Taxes that where withheld during the conversion.
_____________________ The Key to Choose From _____
Michigan Special Handling of Pension Distributions
TurboTax Michigan uses the following pension codes:
M - Military pension for retirement from the US Armed Forces
G - Qualified government or Social Security
C - Current year conversion from a traditional IRA to a Roth IRA
N - Pension/IRA distributions received before retirement age/None of the Above
P - Other qualified IRA distribution
P - Qualified private-source pension
