MA Tax-exempt pension

[gcorbin_51]

I am still not able to submit my taxes due to an 'issue' with my MA taxes.

The feedback that I have received to date seems to suspect that the issue is with my 1099-R rollover from an employee 401k to my IRA.

I have included a screenshot of my rollover 401k entry above. Feedback seems to indicate that it is correctly entered.

I have also included a screenshot of my 1040 income with the note that this year I have done both the rollover and have started taking distributions from the IRA.

I am just looking for suggestions for getting thorough the MA tax issue so I can complete my submissions.

I greatly appreciate everyone's support and suggestions.

[DaveF1006]

It is difficult for us to try to pinpoint the specific issues you are experiencing. You might call 1-800-446-8848 to speak to a specialist that can view your screen to identify the problems you are experiencing.

[gcorbin_51 · Accepted solution]

Just got off of the phone with Lisa at TurboTax who quickly resolved the issue.

Under the statement:

"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."

there was a box that contained a 0 amount.

Deleting 0 resolved the issue.

Thank you to everyone who tried to help resolve the issue and especially to Lisa.

[A-Scott]

My 1099-R information is correctly entered on my Federal Return.  On the Massachusetts Return, I can't resolve an error loop that continues to make my pension exempt.  It is not exempt from Mass taxes.   On the Mass form, there is a $20,000 deduction taken from schedule Y, line 19 - for the reciprocity with NYS.  I have tried for several hours, and spoken to two turbo reps, and haven't been given a solution.  I filed last year with turbo and it worked fine.  After I make the correction, I go through the review cycle, and it gives me an error to fix - it seems to place my whole pension amount in an exempt status, and I can't correct this.  Help!

[hbquincy]

how do you delete the 0?

[RobertB4444]

Please clarify - why do you need to delete a zero?

@hbquincy 

[hbquincy]

This is about a Tax exempt pension problem on the Mass TYax forms.

[AmyC]

To enter a tax exempt Mass pension, it begins in the federal and continues in the state.

On the  Federal Income Tax  portion:

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

@hbquincy 

[Frustration2023]

I had a number other than zero in that box, so I didn't think deleting it would be the solution for me, but it was -- and it didn't affect the tax calculation!

TurboTax really needs to fix this!!

[JCB21]

I couldn't delete the zero on MA Form 1 either, but by deleting the zero in the worksheet that created the Form 1 zero I was able to delete it and then file with no errors.  Turbo tax should fix this!  I wasted hours on this

[CarolM47]

My 401K RMD somehow ended up on the Tax-Exempt Pension section of Massachusetts Form 1, even though it is fully taxable. My Form 1 also had a 0 (highlighted in red) denoting the non-taxable amount. When I deleted that 0, the form was able to be e-transmitted. Whew!