I am having the same issue with Massachusetts. I was forced to migrate to a new custodian who does not have proof that I have had Roth's for 5 years or more (box 7 is a T instead of Q). Turbo desktop in step by step asks in followup questions "were my roths set up before 2020?" As soon as I answer yes, it changes the entire distribution to not qualified and taxable in Massachusetts. The federal remains qualified. I immediately went to forms view ira information worksheet and it shows for line 22 opened a roth ira before 2020 and it is checked yes indicating it is a qualified distribution. It next asks if any withdrawals made before 2024 and I answer no but it states I may have to pay taxes (why?) Then it asks about sum of contributions excluding conversions which would be near impossible since I opened my first roth in 1999 to 2000 as if it is calculating a potential tax due using order of withdrawal (why?) I exit entire question and answer following 1099R section and it shows that I owe Massachusetts tax on the whole distribution which it shouldn't. I went into the forms view and it clearly adds the distribution to my Mass Form 1 income which it shouldn't. If I over ride the 1099R box 7 and put a Q instead of T, the Massachusetts tax due on the distribution disappears. A previous post stated this and a response was to over ride box 7 and change the 1099R as a simple fix but I really believe TT should update its desktop version as there is almost a month left until the return is submitted. I can't even find a way to complain about this problem to TT.
