Roth IRA Distributions

[SteveB97]

Why did TurboTax tax my Roth IRA distribution on my MA state return?  

[DavidD66]

Massachussets uses the same rules that the IRS does to determine whether a dsitribution from a Roth IRA is taxable.  If your Roth IRA was non-taxable for your federal tax return, it would be on your Massachussets state tax return as well.  Please clarify what you are seeing that indicates your Roth distribution is being treated as taxable on your Massachussets tax return.

[SteveB97]

DavidD66,  

Thank You for responding to my inquiry.  For clarity I will use simplified dollar amounts.  I have $300 in Rollover IRA withdrawals (taxable), $200 in Roth IRA withdrawals (nontaxable) and $100 in QCD withdrawals (nontaxable).

Turbotax 2024 Form 1040-SR Line 4a is $600, and Line 4b is $300 with “QCD” typed in.  I believe these are all correct.

Turbotax Massachusetts 2024 Form 1 line 9 is $500, which I believe to be incorrect, since it is taxing my $200 Roth withdrawal.  MA Schedule X lines 2 and 7 are also $500 (Incorrect).  MA Schedule INC has the correct 1099’s listed, including the Roth and its own 1099.

My question is, why has Turbotax filled in the correct amounts on 1040 and the incorrect amounts on the MA Form 1 and Schedule X?

Thank you again so much for your help.

Briarwood97

[MaryK4]

There is a screen in the Massachusetts section titled Taxable IRA/Keogh Distributions where you have to enter the nontaxable amounts.  It says Other Contributions Previously Taxed by Massachusetts.  

TurboTax does not transfer the nontaxable amounts automatically from Line 4a.  @SteveB97 

[SteveB97]

Thank You MaryK4.  Do I have to file an amended return to correct this?  SteveB97

[MaryK4]

Yes, unfortunately, you will have to file an amended return to correct the error and get the overtax refunded.  Please see How do I amend my state tax return? - TurboTax Support - Intuit  

@SteveB97 

[SteveB97]

Thanks MaryK4 - All of my roth contributions were post tax (I already paid taxes).  So I enter the entire amount in the "Other Contributions Previously Taxed by Massachusetts" , correct?  Do I include conversions to the roth, which were also post tax?  Thank You - SteveB97

[AmyC]

Yes and yes, any amounts previously taxed by MA should be entered.