Open the Massachusetts return until you get back to the section in "Pensions and Annuities from All sources"
- Do you have any tax-exempt income from pensions or annuities?
- You should respond "Yes'
- Then the amounts transferred over form the Federal entries will display with a drop-down menu with three selections 1) T-taxable Pension; 2) G- Tax-exempt, and 3) K-Keogh Distribution.
- Please select "Tax Exempt" in the drop-down menu, to exclude the following pensions as non-taxable on the Massachusetts state return. There is no need to enter an amount or "zero".
- Massachusetts, excludes all federal, state, and local pension income from taxation:
- Massachusetts, exempts military pensions from income taxes entirely:
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