I withdrew my retirement money (Commonwealth of MA) and now received a 1099-R. In box 14 (state tax withheld) it says "non-taxable". What does that mean and how do I enter it for my tax return?
TurboTax will make the adjustment. For Massachusetts, Social Security Benefits and Public Pension benefits are tax exempt. When entering the 1099R in TurboTax, make sure and select "Massachusetts" in Box 15. You will be asked it the pension is qualified for the MA exemption as you continue through the remaining 1099R screens.
Your Social Security and pension benefits are taxable for the Federal return. Make sure and have enough withholding so to not incur an underpayment of tax penalty at the end of the year.
Still have questions?Make a post