income reported on Form CSA 1099R. Is it taxable in Massachusetts

[staryxo1]

I have completed my online taxes and am ready to file, but the review keeps coming up with an error message on my State of Massachusetts filing.  In previous years, we have not owed taxes on my husband's pension, but this year, it will not let me go any further to efile.

Thank you

Beth Bigelow

[DaveF1006]

To clarify, what does the error message say?

[staryxo1]

Check This Entry

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.

Tax-Exempt Pension

[JamesG1]

Massachusetts gross income does not include pension income received from the US government  or the commonwealth of Massachusetts. 

However, pension income should be input on the Federal 1040 income tax return.  Then the income flows to the Massachusetts state income tax return.

Make sure that you select CSA-1099-R Civil Service annuity when you enter the 1099-R income.  Follow these steps to enter CSA-1099-R Civil Service annuity in TurboTax Online:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Select Retirement Plans and Social Security, then IRA, 401(K), Pension plan withdrawals (1099-R).
• Click Start / Revisit to the right. 

Make sure that you answer questions at this screen in the Massachusetts state income tax return.

@staryxo1 

[KamiA]

I get this error when I try to submit electronically.  I do not have state or Federal pension but company pension.  The whole amount should be taxable in MA.  But using desktop Turbotax Premier I cannot get it to pass the final check even though I indicated that nothing was tax exempt.  Fed tax had no problem.

[LindaS5247]

When you entered you Form 1099-R did you answer all of the follow-up questions?  There is a question that asked if your 1099-R was for a State or Government Pension, which you are stating yours is not.  It does not seem your would be getting hung up on this issue because you have a pension that is not exempt.

Try clearing your cache and cookies and deleting and reentering your Form 1099-R.  Carefully answer all of the follow-up questions and see if that frees it up.

Follow these steps to delete your 1099-R in TurboTax:

1. Go to Form 1099-R
2. Select the trash can next to your 1099-R and then answer Yes

Here's where to enter your 1099-R in TurboTax:

1. Open or continue your return
2. In the Federal section, select Wages & Income
3. Scroll to locate Retirement Plans and Social Security, and select Show more
4. Select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R)

You can also find the 1099-R section using the Search option in TurboTax. Open your return, enter 1099-r in the search bar, and select the Jump to 1099-r link.

Worst case you may try to e-file your 2022 1040 income tax return only. Print your MA income tax return and mail it. If you're having problem because of the tax-exempt pension.

Massachusetts doesn't tax Social Security retirement benefits and income from public pension funds, and  Income from an IRA, 401(k), 403(b) or any other type of retirement savings account is taxed at the state income tax rate of 5%.

If this does not help please feel free to come back to TurboTax Community with additional details or questions or click here for information on Turbo Tax Support.  You can connect with a Live TurboTax Agent and share your screen.