IsabellaG
Expert Alumni

Retirement tax questions

No. Ordinarily,  you pay tax on your retirement income in your resident state. But in Massachusetts, A Massachusetts resident may deduct income received from a contributory annuity, pension, endowment or retirement fund of another state or its political subdivisions if:

  • the other state has a specific income exclusion for pension income which applies to Massachusetts state or local contributory public employee pension plans; or
  • the other state has a specific deduction or exemption for pension income which applies to Massachusetts state or local contributory public employee pension plans; or
  • the other state has no income tax.

See this link. Since New Hampshire has no income tax, you would be able to deduct your pension.

First the income will be transferred to your MA return, and you'll have to take the deduction. Go through the MA return until you reach the screen  Qualified Contributory Pension Income. See the screenshot below. Click Yes, and enter the amount of the pension on the next screen.

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