Non qualified W2 income used twice on MA state tax - once as wages & again as other income

Forum|Forum|3 years ago
February 1, 2023
5 replies
36 views

Fed tax shows zero W2 income, MA state shows non qualified pension W2 income & again as other income from Schedule X

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RobertB4444

Level 15

Go back to the wages and income section of the federal return and delete the W2 you entered there. Then, re-enter it being very careful to only enter information to the boxes that correspond to the boxes on the form. If they are blank on the form then leave them blank. Do this even if you imported the W2.

@TonyV2022

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TonyV2022Author

Level 2

I have carefully reentered the W2 data only inserting items that are not blank on the W2. The Federal return line 1 shows zero for W2 income because the W2 income is a nonqualified pension distribution. The 2022 Federal Schedule 1 has been modified & line (t) has been added to Schedule 1 to indicate a nonqualified pension distribution.

The Massachusetts 2022 Form 1 shows the W2 income on line 3 & is also included on line 9 which is the income from Schedule X line 7. Schedule X shows the W2 income again on line 4 Other 5% income.

My conclusion is that the Federal Form 1040 is correct & the MA Form 1 has not been updated for the changes in Federal Schedule 1 & therefore includes the Non Qualified pension distribution twice. Once as W2 wages & again as other 5% income.

AmyC

Level 15

Not all MA forms are ready for e-file. In particular, the INC for income. Once the form is ready, your issue should resolve. You are correct that it should not be showing both places.

Reference:

Form 1

MA forms and instructions

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