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Anonymous
Not applicable

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

This is for MA teachers retirement. I have entered the information directly from my 1099-R but it keeps asking me to fix this
7 Replies
ReneeM7122
Level 8

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

To enter your exempt State employee pension, you will first have to enter the necessary information in your Federal Income tax return and then in the State income tax return.   Here are full instructions.  Start with #6 since you've already done the 1099 part.

 

 

On the  Federal Income Tax  portion:

  1. In the search or find box, type in 1099-R
  2. Click on Jump to 1099-R
  3. Scroll down to Retirement Plans and Social Security
  4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
  5. Enter your 1099-R or if you have entered it, click on Edit then Continue
  6. Answer the next questions until you get to the Where Is This Distribution From? screen
  7. Select the source State Employees and enter the information requested:
  8. Click on Continue
  9. Click on From a Qualified Plan
  10. Continue answering the questions

On the State return portion: 

  1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
  2. At the Retirement Distributions Summary page, click on Edit State
  3. If no additional information is required, click on Continue
  4. Click on Done

Here is a link to the MA state website, which discusses the taxability of MA pensions.

Staroracle3
Returning Member

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

I have the Deluxe edition.   I am still stuck at this place. I can't follow the list. Help

ReneeM7122
Level 8

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

To get the State pension deduction, you will first have to enter the necessary information in your Federal Income tax return and then in the State income tax return.

Here are the steps to enter your exempt State employee pension:

 

On the  Federal Income Tax  portion:

  1. In the search or find box, type in 1099-R
  2. Click on Jump to 1099-R
  3. Scroll down to Retirement Plans and Social Security
  4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
  5. Enter your 1099-R or if you have entered it, click on Edit then Continue
  6. Answer the next questions until you get to the Where Is This Distribution From? screen
  7. Select the source State Employees and enter the information requested:
  8. Click on Continue
  9. Click on From a Qualified Plan
  10. Continue answering the questions

On the State return portion: 

  1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
  2. At the Retirement Distributions Summary page, click on Edit State
  3. If no additional information is required, click on Continue
  4. Click on Done

Here is a TurboTax article about retirement.

 

@Staroracle3

Staroracle3
Returning Member

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

I jump to 1099-R.   2 choices.  I select the Mass teachers pension - edit.  

I verify all the entries.  There is no scrolling down to anthing.

AmyC
Expert Alumni

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

@Staroracle3 Once you can see the 1099-R information filled in, hit continue.

  1. Keep going until you get to Where Is this Distribution From?
  2. Select the source State Employees and enter the information requested:
  3. Click on Continue
  4. Click on From a Qualified Plan
  5. Continue answering the questions

 

Review your MA state return:

  1. Nothing should be entered directly into the state program for dollars to exempt.
  2. Go to retirement/ pension section under adjustments.
  3. Edit your retirement pension and be sure it is marked, Yes, this distribution is excludable.

Excludable pension and annuity includes US Government and Commonwealth of MA and its political subdivisions.

 

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basgray
Returning Member

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

Not sure what I'm doing wrong with this issue. I've tried the different recommendations has anyone else solved this issue?

 

AmyC
Expert Alumni

I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

@basgray  We have found that usually people are not going through all of the questions after entering the 1099-R. People enter it and see a couple questions that don't apply and go somewhere else. You have to keep going through all of the questions to get to the ones you need to answer.

 

Please carefully follow the directions above. Edit your 1099-R and keep hitting continue and answering questions all the way through. Then move to the state and follow those steps.

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