I got a 1099-r from another state (NH) is that taxable in MA?

[MaryK1 · Accepted solution]

If you are a Mass resident or were when you received it, it is taxed in Mass.  Public Law 104-95 (P.L. 104-95) allows the state of residence to tax and prevents any state from taxing income from certain pensions and deferred compensation plans paid to individuals who are not residents or domiciliaries of that state.

A Massachusetts resident may deduct income received from a contributory annuity, pension, endowment or retirement fund of another state or its political subdivisions if:

• the other state has a specific income exclusion for pension income which applies to Massachusetts state or local contributory public employee pension plans; or
  
• the other state has a specific deduction or exemption for pension income which applies to Massachusetts state or local contributory public employee pension plans; or
  
• the other state has no income tax.

[lclarknh]

But this is what the MA tax law says  "A Massachusetts resident may deduct income received from a contributory annuity, pension, endowment or retirement fund of another state or its political subdivisions if:

the other state has a specific income exclusion for pension income which applies to Massachusetts state or local contributory public employee pension plans; or
the other state has a specific deduction or exemption for pension income which applies to Massachusetts state or local contributory public employee pension plans; or
the other state has no income tax."     It's a little confusing

[MaryK1]

Yes, I understand what you mean- essentially Mass taxes it because you are a resident but THEN allows you to exclude it under the public pension exemption.  So it has to be included then removed.  Let me check in Turbo Tax for you.

[lclarknh]

Thank you!! It is so confusing

[MaryK1]

Updating...

[lclarknh]

Well now another question...I had the same thing last year and I didn't see this part so I got taxed...can I get that money back?

[fdimaggio]

In doing my Turbo tax return for Mass., where do I post on Schedule Y, line 13, “deductible amout of qualified contributory pension income from another state"?