I have a 1099-r and am filing in Massachusetts. Box 12 (State tax withheld) says NON-TAXABLE. But it shows up as taxable on my state return. How can i correct this?

[Cindy0H]

When you enter this 1099R in the federal return make sure to put MA in the state ID. Then you will see a page about Massachusetts Special Handling (see screenshot). If you complete this it will carry to the Massachusetts return and it will not be taxable. Here's how to get there:

• Federal 
• Income & Wages
• Retirement
• 1099R...update
• Edit the 1099R... make sure MA is in box 13...continue
• You will see the special handling page after a couple of clicks

If you have more questions about this, ask in the comment box below.

[NEHume]

I have a 1099-R from Massachusetts and Box 12 says NON-TAXABLE, but it is showing as Taxable on my State Return.   I never got the special handling page.  Help!

[JotikaT2]

Go back to the Federal section of the program. 

1. Select Income & Expenses 
2. Select IRA,401(k), Pension Plan Withdrawals (1099-R) 
3. Select "Edit" under the appropriate 1099-R form 
4. Proceed to answer through the screens until you see "Select Your State".  (You should see this after enter your details from the 1099-R, and the question asking if you are a public safety officer. 

Make sure you have selected Massachusetts here in order to have the state return exclude any nontaxable retirement income. 

[mgxiao]

I have a similar question for filing my State return for Massachusetts. I received a full distribution from a life insurance policy, and it has gross distribution and a taxable amount. My MA return is looking to tax the taxable amount at 5% - is this correct? The taxable portion was also included in the Federal tax calculation of my adjusted gross income. I could not find a good answer to MA's treatment of insurance distributions. Thank yu! 

[DMarkM1]

Massachusetts follows the federal rules.  They will tax surrender amounts above premiums paid.  The MA tax rate for 2020 is 5%.  

[jfranklin01]

How do I indicate on my tax return that the income is not subject to mass state income tax

[MayaD]

Please refer to LindaB1993 to make sure the income is not taxable on your Massachusetts's return.