(1) I totally understand Schedule X, Worksheet Line C " Total contributions previously taxed by Massachusetts" enables one to specify the Basis of contributions to an IRA. Until this Basis is exhausted through distributions, MA does not tax this amount. Should one enter the ENTIRE grand sum of contributions made, over the years, that were previously taxed by Massachusetts? Or enter only the portion of the basis for the single year in which one is declaring a distribution?
(2) Further, Line D ("Total distributions received in previous years") confuses me. For 2024 I started taking IRA distributions. So I would enter 0 here as there were no previous distributions.
But in 2025, I will start to take RMDs from my IRAs, continuing my IRA distributions. When completing returns for 2025, if I put in my "distributions received in previous years," it's possible that if Line D is smaller than Line C, then the difference is taxed by MA.
Why would ANY distribution received in previous years ever be taxed in the most recent year, when those distributions were already taxed in previous years?
Thanks for any help.
