1099R

Line 7 on my 1099r has a#2 distribution code and this is causing me to owe $1000 in State taxes. This is my pension and I'm not suppose to have to pay state tax on it and never have in the past. I've also always had a code 2 for this box. Why would I owe this year???

1017

Expert Alumni

Mar 2, 2023 7:53:25 PM

Could you please clarify what state you are referring to?

Returning Member

Mar 2, 2023 8:15:36 PM

Mississippi

Expert Alumni

Mar 3, 2023 7:05:52 AM

Yes, this income is excluded but you do need to exclude this in your Mississippi state tax return. To exclude:

Go to your state taxes tab>select the edit button next to Mississippi
Scroll to a screen called Enter Any Other Income and Losses
Enter the amount of the pension distribution as a negative number
Enter the description of "MS pension adjustment"

Returning Member

Mar 3, 2023 12:05:45 PM

Thank you for the help!!

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1099R