Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Apr 18, 2021 7:00:02 PM

ARIZONA STATE PENSION PLAN AND TAXES

BOTH MY HUSBAND AND I ARE IN THE ARIZONA STATE RETIREMENT SYSTEM AND WE LIVE IN ARIZONA.

IS THERE LESS INCOME TAX CHARGED IF WE EARNED THE $ IN THE ASRS AND LIVE IN ARIZONA?

WOULD THERE BE A DIFFERENCE IF WAS A FEDERAL PENSION PLAN INCOME?

THE COMPUTER KEEPS CHANGING OUR ENTRIES TO FEDERAL INSTEAD OF THE CORRECT ARIZONA PENSION PLAN. 

0 1 639
1 Replies
Expert Alumni
Apr 22, 2021 7:56:11 PM

Arizona says, "Arizona does allow, however, a subtraction for pensions from the state of Arizona, its political subdivisions or from U.S. government service, including the U.S. military. "

 

So pensions from the AZ Retirement System are treated the same as pensions from the federal government.

 

So your dollar amount should be correct.

 

Note that the answers on some screens appear to change whenever you return to the screen. In fact, what is happening is that the answer affects the flow of the program after this point, so they want you to reconfirm the answer every time you re-enter the screen. That is, your original entry is not being changed, you are just being asked to reconfirm it because you have entered the same screen again.

 

But, as I noted, it won't matter to your AZ return which one it is marked as.