I am asked to Check This Entry on "MA Form 1: Tax-Exempt Pension should not be entered directly ...." It transferred from Federal and is correct, I don't know how to fix.

[Anonymous]

This is for MA teachers retirement. I have entered the information directly from my 1099-R but it keeps asking me to fix this

[ReneeM7122]

To enter your exempt State employee pension, you will first have to enter the necessary information in your Federal Income tax return and then in the State income tax return.   Here are full instructions.  Start with #6 since you've already done the 1099 part.

On the  Federal Income Tax  portion:

1. In the search or find box, type in 1099-R
2. Click on Jump to 1099-R
3. Scroll down to Retirement Plans and Social Security
4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
5. Enter your 1099-R or if you have entered it, click on Edit then Continue
6. Answer the next questions until you get to the Where Is This Distribution From? screen
7. Select the source State Employees and enter the information requested:
8. Click on Continue
9. Click on From a Qualified Plan
10. Continue answering the questions

On the State return portion: 

1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
2. At the Retirement Distributions Summary page, click on Edit State
3. If no additional information is required, click on Continue
4. Click on Done

Here is a link to the MA state website, which discusses the taxability of MA pensions.

[Staroracle3]

I have the Deluxe edition.   I am still stuck at this place. I can't follow the list. Help

[ReneeM7122]

To get the State pension deduction, you will first have to enter the necessary information in your Federal Income tax return and then in the State income tax return.

Here are the steps to enter your exempt State employee pension:

On the  Federal Income Tax  portion:

1. In the search or find box, type in 1099-R
2. Click on Jump to 1099-R
3. Scroll down to Retirement Plans and Social Security
4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
5. Enter your 1099-R or if you have entered it, click on Edit then Continue
6. Answer the next questions until you get to the Where Is This Distribution From? screen
7. Select the source State Employees and enter the information requested:
8. Click on Continue
9. Click on From a Qualified Plan
10. Continue answering the questions

On the State return portion: 

1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
2. At the Retirement Distributions Summary page, click on Edit State
3. If no additional information is required, click on Continue
4. Click on Done

Here is a TurboTax article about retirement.

@Staroracle3

[Staroracle3]

I jump to 1099-R.   2 choices.  I select the Mass teachers pension - edit.  

I verify all the entries.  There is no scrolling down to anthing.

[AmyC]

@Staroracle3 Once you can see the 1099-R information filled in, hit continue.

1. Keep going until you get to Where Is this Distribution From?
2. Select the source State Employees and enter the information requested:
3. Click on Continue
4. Click on From a Qualified Plan
5. Continue answering the questions

Review your MA state return:

1. Nothing should be entered directly into the state program for dollars to exempt.
2. Go to retirement/ pension section under adjustments.
3. Edit your retirement pension and be sure it is marked, Yes, this distribution is excludable.

Excludable pension and annuity includes US Government and Commonwealth of MA and its political subdivisions.

[basgray]

Not sure what I'm doing wrong with this issue. I've tried the different recommendations has anyone else solved this issue?

[AmyC]

@basgray  We have found that usually people are not going through all of the questions after entering the 1099-R. People enter it and see a couple questions that don't apply and go somewhere else. You have to keep going through all of the questions to get to the ones you need to answer.

Please carefully follow the directions above. Edit your 1099-R and keep hitting continue and answering questions all the way through. Then move to the state and follow those steps.

[andrei1]

did not help, info from fed portion isn't fed into MA return, removing 1099r completely still will keep empty form on state return and prevent from filing.

[dameaty]

Took me 3 days to figure this out. 

I had a 1099-R from a 401k roll over and my wife had a 1099-R from a distribution due to a top heavy 401k (in other words not because of retirement and not from a govt program).

The program would not let submit my state returns because the tax exempt distribution (cannot remember the error exactly) should not be enetered on Form 1 of the MA returns.... but the value of the distribution was zero! I could not remove the zero. I checked the federal returns and there was no way to fix this. I tried a number of things on the MA return, but could not solve this. Finally, I went to the Forms selection. There, I was able to delete the zero and leave it blank. This finally worked and my state returns have been submitted.

[Anna Tran]

I had 401k rollover from my previous employer to current employer and I was struggling with that issue on MA Form 1. I had TurboTax Live Assisted and connected with an expert and she couldn't figure out after trying to go through fed and state for numerous things for more than an hour. I don't blame her as she already tried her best to help me with my issue. At the end, I figured it out by going to state return and go to the adjustment. Then go through the questions and it will have the question for Pension Adjustment - Federally Taxable. I will need to remove the 0 in the box and leave it blank for non-taxable Massachusetts Pensions. After that I am successfully file my tax return. 

[MA TEACHER-newly retired]

Thank you! This solved the issue-the box must be empty.