State return in Massachusetts wrongfully adds roth ira conversion to the total income

Forum|Forum|3 months ago
April 5, 2026
1 reply
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I am filing in MA. In 2025 I performed a roth-ira backdoor conversion for the amount of $7000.

I contributed the entire amount to traditional IRA and converted it to Roth immediately (within same day or two).

None of this amount is supposed to be taxable since I have no other funds in any traditional IRA from previous years.

In turbotax, in the federal return, I selected the option "I converted some or all of it to a Roth IRA", and then later also "Yes, all of this money was converted to a Roth IRA".

The problem is that now in the state return the income is inflated. The MA state return shows those $7000 as distribution, although it shouldn't.

How can I fix this?

Best answer by MaryK4

You must manually tell the Massachusetts interview that this $7,000 was already taxed by the state.

Go to the State Taxes revisit the Massachusetts return.
Continue through the interview until you reach the screen for "Adjustments to Income" or "Income and Deductions"
Look for a section or screen titled "Taxable IRA/Keogh Distributions" or "Retirement and Pension"
You will see a field labeled "Total contributions previously taxed by Massachusetts"
Enter $7,000 in that box. This tells the software that you have already paid MA tax on this principal, effectively reducing the taxable distribution amount on your Schedule X to $0

MaryK4Answer

Level 15

You must manually tell the Massachusetts interview that this $7,000 was already taxed by the state.

Go to the State Taxes revisit the Massachusetts return.
Continue through the interview until you reach the screen for "Adjustments to Income" or "Income and Deductions"
Look for a section or screen titled "Taxable IRA/Keogh Distributions" or "Retirement and Pension"
You will see a field labeled "Total contributions previously taxed by Massachusetts"
Enter $7,000 in that box. This tells the software that you have already paid MA tax on this principal, effectively reducing the taxable distribution amount on your Schedule X to $0

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