MA will not tax pensions from other states if those states don't tax pensions from MA. This is the case for my mother. Her pension is from NY State. A portion of that is not subject to NY State taxes and therefore, the same portion is not subject to MA State tax. I completed MA Schedule Y as instructed. But now I cannot e-file MA state forms for my mother. I'm using the desktop solution. And this error was returned AFTER I paid for e-filing for Mom's MA taxes.
I cannot claim this portion as not taxable for Federal income tax. Only for State. So, I entering info on the Federal form is not the right thing to do. I have read the other articles with similar issues, but their scenario is different. This is not a rollover situation.
https://www.mass.gov/info-details/tax-treatment-of-out-of-state-government-pensions-for-ma-residents...
