Cannot fix a Massachusetts state tax return error in order to e-file. Error message reads "Tax-Exempt Pension should not be entered directly on Form 1 .....etc....". I've seen similar posts on this subject relating to pensions but not any resolutions. In my case it's due to a life insurance distribution that is only partially taxable. I've double checked the 1099-R entries on the Federal form, and it is correct. I've paid for the MA state e-filing and have not yet e-filed the Federal.
