Massachusetts Schedule X IRA Conversion

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I converted $707 from a Traditional IRA to a Roth IRA in 2020. I contributed $500 in 2012 and $200 in 2013. The remaining $7 was interest. (I forgot to invest the money.) During 2012 and 2013 I lived in Massachusetts and worked in Rhode Island. I made all of my income in Rhode Island. Turbo Tax asks me to enter "Other Contributions Previously Taxed by Massachusetts." Should I enter $700 or $0?

WendyN2

Level 9

No, you would enter zero for this question. I understand where you might think that in the conversion and multi-state situation, but given that they were previously Trad IRAs then you were not previously taxed on them.

alm1Author

Level 2

I was confused because MA considers contributions to IRA's to be taxable:

https://www.mass.gov/service-details/view-tax-treatment-of-retirement-plan-contributions-and-distributions

JohnB5677

Alumni - Intuit

Unfortunately, Wendy is not correct.

You should enter the $700.

Massachusetts does not give you a tax deduction on traditional IRA's like you get from the federal. You pay the tax when you put contributions into the IRA.

Therefore, every contribution that you made to an IRA while you lived is Massachusetts was already taxed.

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