1099R

[dearnest1]

Line 7 on my 1099r has a#2 distribution code and this is causing me to owe $1000 in State taxes. This is my pension and I'm not suppose to have to pay state tax on it and never have in the past. I've also always had a code 2 for this box.  Why would I owe this year???

[BillM223]

Could you please clarify what state you are referring to?

[dearnest1]

Mississippi 

[DaveF1006]

Yes, this income is excluded but you do need to exclude this in your Mississippi state tax return. To exclude:

1. Go to your state taxes tab>select the edit button next to Mississippi
2. Scroll to a screen called Enter Any Other Income and Losses
3. Enter the amount of the pension distribution as a negative number
4. Enter the description of "MS pension adjustment"

[dearnest1]

Thank you for the help!!