My state pension is not all taxable federally and not taxable on the state at all
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Returning Member

My state pension is not all taxable federally and not taxable on the state at all

how do I indicate this on the form?  how do I include the basis so you can calculate the taxable part each year or do I have to calculate this myself on paper not on the return?
7 Replies
Level 15

My state pension is not all taxable federally and not taxable on the state at all

Why do you believe your pension is not taxable?  Did you receive a Form 1099-R for the pension income?  If so, what is the distribution code shown in box 7 of the form?  What is shown in box 2a of the form?
Returning Member

My state pension is not all taxable federally and not taxable on the state at all

7 and because for the last 20 years that is how it has been.  i have been professionally preparing return on lacerte till I retired and they have a form that tracks this.
Level 15

My state pension is not all taxable federally and not taxable on the state at all

The Form 1099-R will show the taxable amount in box 2a along with the other tax data to be reported in the other boxes of the form.  
The Forms 1099-R are usually not released by the administrators of retirement accounts until sometime in January.
Returning Member

My state pension is not all taxable federally and not taxable on the state at all

it doens't show it.  I have to calculate it.
Level 15

My state pension is not all taxable federally and not taxable on the state at all

....or if box 2a is blank or says "unknown", then you leave box 2a blank and the software will ask about your basis.

.......for the state pension, one of the followup questions after the main form, will be a state-specific asking about the "source" of that pension depending on what state you indicated you lived in.   (exception is the PA software, where they don't ask for the source of the pension until you get into the state software section....normally, it's right up with with the 1099-R entry)
Level 15

My state pension is not all taxable federally and not taxable on the state at all

The program will compute the safe harbor method ... go slow & read the screens carefully.
Level 15

My state pension is not all taxable federally and not taxable on the state at all

Enter the 1099-R for the distribution then complete the follow up screens to determine the taxable portion using the safe harbor method  will be completed automatically.

To enter a form 1099-R

·         Click on Federal Taxes (Personal using Home and Business)

·         Click on Wages and Income (Personal Income using Home and Business)

·         Click on I'll choose what I work on

·         Scroll down to Retirement Plans and Social Security

·         On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button


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