When I enter my CSA 1099R, one of the questions it asks me is : "Where is your distribution from?" When I select "none of the above" I keep getting "Needs Review? Why?

[surfdog]

It also says "Select the source of this distribution and any other Maryland information".  This is a OPM CSA 1099R, I do have Maryland income (passive rental) but live in NC.  But why the question is worded this way for OPM retirement income doesn't make sense. Again, if I select anything other than "None of the above" I get "Needs  Review". But thats the only right answer.  A SW glitch?

[ColeenD3]

When I ran an example, I got a couple of possible reasons:

1.If you entered MD for withholding, the program requires a state number in Box 13

2. The Learn More link shows this information: 

Maryland Special Handling of Pension Distributions

TurboTax Maryland uses the following pension codes:

P - Maryland state pickup contributions, limited to the taxable distribution for this year. Any excess can be carried forward to future years.

M - Active-duty military retirement

S - Self-employed pension plan (Keogh) you contributed to prior to 1967

You can subtract from your Maryland taxable income a portion of your qualified pension and retirement distributions if you are over age 65 or you (or your spouse) are totally disabled.

Distributions from an IRA, simplified employee pension (SEP), Keogh or ineligible deferred compensation plans don't qualify for this subtraction.

When you designate your distribution as one of the above types, TurboTax does all the math for you on your Maryland return.

[surfdog]

Thanks Colleen,

Yes I entered the MD tax #. I actually have withholdings in two states (NC and MD) on this 1099R.  Both are entered correctly. 

None of those 3 pension codes in the question apply to my federal retirement regarding MD. In fact I lived in NC the entire year, and have entered that appropriately.

The only MD income I have is passive income from a rental home.

The only reason I have MD tax entered on this 1099R is because I didn't change my state withholding with OPM quick enough last year so they withheld MD state income tax on my January 2020 retirement disbursement, the following 11 months were all for NC. Thus why I have withholdings from two states (MD and NC). 

My home of record for the entire year was NC, none of my income on this 1099R was disbursed while I lived in MD. So I'm perplexed why it's asking me this question about MD for this 1099R.

[surfdog]

I ran this through all the way through the tax checker section... it wants me to make a selection from the Question and answers below.  I want to select "None of the above"... but it stays in red and won't accept that answer.  Why?

"Select the source of this distribution and enter any other Maryland information. Learn more

- Pickup contribution

- Active or reserve military retirement

- Self employed retirement income from a plan you established and contributed to before 1967

- None of the above

Needs info."

[MarilynG1]

Click this link for more info on Source of this Distribution.

You will need to file a Non-Resident Maryland State Return to get tax paid there refunded. 

This link gives details on How to File a Non-Resident State Return. 

[surfdog]

Thanks.  The problem resolved itself.  I think there was a glitch.  I let it sit for 4 days and all the sudden it was fixed.  No change on my part.  Whatever works. thanks again 👍