Contributions to a SEP for employees of an S corporation are deductible both federally and in Massachusetts, but SEP contributions for a sole proprietor are not deductible in MA. Hence, for the last several years, my SEP contributions were deductible on the federal level but not in Massachusetts - read i paid tax on those contributions. Accordingly, I kept track of them to ensure I'd not be taxed again when I withdrew the monies. That time has now come and I am taking distributions, expecting to pay income tax on the federal level but not in Mass - sadly I do not see how / where Turbo Tax makes the adjustment in Massachusetts. Am I blind? I am simulating 2024 taxes to aid in financial planning. Can anyone help?
