Does Massachusetts tax Keogh retirement earnings?

Forum|Forum|7 years ago
June 5, 2019
5 replies
1 view

Fed TT says no, State TT says yes. Which is correct?

TurboTax Home & Biz Windows

Best answer by Zbucklyo

Earnings within a Keogh (before withdrawal) are not taxed. The withdrawal itself may or not be taxable in MA. Use Schedule X, Line 2 worksheet to determine the taxable amount, if any. Basically, the amount you contributed is not taxed, but once all the contributions have been withdrawn, the earnings are considered taxable by MA.

Zbucklyo

Level 8

Are you referring to a contribution or withdrawal?

peepa1Author

Level 2

withdrawal

peepa1Author

Level 2

there is an error in TurboTax: Keogh earnings cannot be untaxed in Mass as stated by Fed TT, and then taxed in the Mass State TT forms

peepa1Author

Level 2

Zbucklyo: thank you for your answer. It is the same as my understanding of the situation. My problem is actually with TT which has a serious flaw in its Fed forms. This was supposed to be corrected over a year ago. The error persists making me believe each year that I have missed something in understanding what I need to do.