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marcmwall
New Member

How do I indicate in Turbotax that I have a federal pensions, which is not subject to taxes in Hawaii, my state of residence?

Is a pension from the Foreign Affairs Retirement and Disability System considered from a financial institution or other provider (1099-R) or from the Office of Personnel Management (CSA 1099-R)?
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4 Replies
LenaH
Employee Tax Expert

How do I indicate in Turbotax that I have a federal pensions, which is not subject to taxes in Hawaii, my state of residence?

You have to indicate it is a government pension on the screen below (screenshot attached). To get to this screen, go back to your 1099-R input. After you input the amounts from your 1099-R, click Continue and you will reach the below follow-up screen. Since it is not taxable in Hawaii, enter 0.00 for the Hawaii distribution amount. 

 

If you need assistance getting back to your 1099-R, click here

 

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How do I indicate in Turbotax that I have a federal pensions, which is not subject to taxes in Hawaii, my state of residence?

@LenaH 

 

Edited...Prior comment here may no longer be valid, at least for desktop software.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
LenaH
Employee Tax Expert

How do I indicate in Turbotax that I have a federal pensions, which is not subject to taxes in Hawaii, my state of residence?

I am having technical issues downloading the state program to test this in TurboTax Desktop. However, when I tested this in TurboTax Online, the distribution screen I posted earlier does not include the same Hawaii distribution amount box. However, when going through the state program, it automatically deducted the pension distribution. Because of the differences in screens, I cannot determine whether this would happen in TurboTax Desktop. I will continue to attempt TurboTax Desktop and edit my answer accordingly. 

 

@SteamTrain 

 

 

 

If you are using TurboTax Online, please ensure you marked the correct type of distribution after your 1099-R entry.

 

@marcmwall  

 

 

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How do I indicate in Turbotax that I have a federal pensions, which is not subject to taxes in Hawaii, my state of residence?

@LenaH 

 

Somewhat...My mistake.

What I indicated above, used-to-be how the $$ were to be entered (having used the software for over 20 years)....BUT  Apparently TTX desktop has made some changes in the past few years.

 

...I went back to my NC test files and checked the NC distribution amount for a CSA-1099-R from OPM, where checked as Bailey Settlement (What NC uses for US Govt pensions established before a certain date.)

At least back to 2021, it made no difference whether I entered 0.00 or the value from box 2a, the software always used the box 2a value as the NC income deduction amount.  Almost seems as if the software developers realized folks were mis-entering it , and recoded it to always use the right number.  (not sure what they do if box 2a is empty/undetermined.)

 

(I'll delete my comment above)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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