Turbo Tax transferred my return to my state return. the 1099R information to the state return, as non taxable military retirement, About 47,000 mistake. How to fix?

Forum|Forum|2 years ago
September 26, 2023
1 reply
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1099 R 47851.80 taxable federal and state
1099R 18916.89 taxable federal NOT state (military)
showed up on state as all not taxable

TurboTax Deluxe Online

NCperson

Level 15

@null725 trying to understand what you issue is.

are you stating that in your state (what state is that?) the military pension is not showing on the tax return as taxable income, yet it should be taxable in your state?

in most states - and this is why it's important to tell us what state it is- the state tax form begins with either the AGI (Line 11) of federal form 1040 or Taxable Income (line 13) of federal form 1040. So it is taxable by the federal gov't, it is already in the state numbers - you won't see if separately.

what brings you to the conclusion that the pension is appearing as non -taxable on the state return? what line number (and again what state) are you looking at?

NCperson

Level 15

I read this again and I think I better understand

did you enter the two 1099Rs separately? they can't be combined.

when you enter the military pension, watch the questions closely so that the $19,000 pension is SUBTRACTED on the state return. Many states begin the tax return with the federal AGI or taxable income, so this pension gets subtracted on the state return.

Hal_Al

Level 15

For more specific advice, you need to identify the state, as the state interview will vary.

That said, the general answer is: the exclusion, of the military retirement income, from the state return, is not automatic. You have to tell TurboTax, at some point in the state interview, that some of your income is qualified military retirement.