If you are a Massachusetts resident, when you enter the CSA-1099-R, in the screens after the CSA-1099-R entry, there will be a screen with the title, "Massachusetts Special Handling of this 1099-R".
On this screen, you will be able to check that this pension is from the OPM as a "Qualified government retirement distribution".
Thank you. However that is not working. I can tell by the refund amount. Currently, refund amount is $72. If I remove the Pension amount, State refund goes to $319. I also receive a message to review my entry which reads, “Form 1: Tax-exempt Pension should not be entered directly on Form 1 for State Electronic Filing. You should enter the information on the Federal Return , Form 1099-R and/or use the Pensions and Annuities Smart Worksheet to make any tax -exempt adjustments”.
Any further assistance would be greatly appreciated.
This is followed by a screen shot of were it would be noted on the Massachusetts Form 1.
Also, I am a widow of the Pension recipient. My code is CSF.
It is true that you should normally not make changes(edits) in the Review section, no matter how much it implies that you can.
"If I remove the Pension amount, State refund goes to $319" From where did you remove the pension amount? On the federal return? What did you change?
Depending on what you changed, there may be other things that could affect your MA tax.
Please look at your state tax summary both before and after this "change". What was the Taxable 5% Income and the Taxable 12% income both before and after the change. Is the difference exactly equal to the amount you changed?
I removed the OPM amount from Federal which changed the refund amount from the total in the upper left corner.
(For 2020, Massachusetts is assessing 5% on all except short term gains.)
I added all my amounts less my exemptions and multiplied by 5%. I came up with $70 Refund. Very close to Turbo Refund of $72.
If I decline to fix the issue, would that mess up the next years tax return?
"I removed the OPM amount from Federal" - did you set the box 1 amount on the 1099-R to zero in the 1099-R interview in the Federal interview?
You do not want to do that to "fix" the problem because you will almost certainly get a letter from the IRS, who already have a copy of the unedited 1099-R.
No, I asked about the Taxable 5% Income because this is a single line item on the state tax summary that you can actually see. What is this value before and after you zero out the Box 1 entry in the 1099-R? I want to see how much of the OPM distribution was exempted from tax.
To see the state tax summary, go to a screen in the state interview (doesn't matter which one), look to the left for Tax Tools, click on it then click on Tools, then in the center, click on View Tax Summary. The state tax summary will appear in the center of the screen.
Nothing working. I am not the only one.
Long list of unhappy customers. I sent as is.