Massachusetts Schedule X – Roth IRA Conversion

[user17713677228]

I completed my first Roth conversion which includes 401k and traditional IRA contributions and investment gains (deductible and non-deductible contributions).  I have not started taking any distributions.  I received my 1099-R  for the conversion showing (hypothetical) converted amount of $10,000.  After completing IRS Form 8606, $9,000 is taxable with IRS and $1,000 is not taxable.  Massachusetts is asking for “Other Contributions Previously Taxed by Massachusetts”.  Should I enter $1,000 here?  Or is there some other calculation that needs to be considered?

[user17713677228]

Further research shows that MA does not follow the same methodology as IRS.  Form 8606 doesn't apply here.  Thus, all traditional IRA contributions should be included on this MA schedule.  Should Roth IRA contributions as well?  I've seen different posts where some say yes and some say no.

[DawnC]

No - your Roth contributions have already been taxed.    Massachusetts wants to know the amounts that were already taxed by MA in prior years, so MA doesn’t tax them again.   

Massachusetts taxes income differently than federal law.  They do NOT allow a deduction for traditional IRA contributions.   Previously taxed contributions are what make up your MA basis.   
 

[user17713677228]

Thank you very much!