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Rosie104
New Member

Turbo Tax says my Massachusetts pension is taxable by Mass. How do I change this in my Federal Return so it will be correctly non-taxable in my Mass. state return?

How do I change my pension income to non-taxable in my federal return so it will show as non-taxable in Massachusetts.  It is a Mass. pension so it is taxed federally, but not by Mass.
1 Reply
MichaelDC
New Member

Turbo Tax says my Massachusetts pension is taxable by Mass. How do I change this in my Federal Return so it will be correctly non-taxable in my Mass. state return?

The standard procedure is to enter the 1099-R in TurboTax exactly as it is printed on the paper form. 

Generally the additional questions you answer during the TurboTax program will fill this information at a later time. Whether or not your state actually taxes that amount is handled during the following interview questions when you select the source of your 1099-R.

After you enter your 1099-R, TurboTax will display a screen Massachusetts Special Handling About This 1099-R.  

Mark the appropriate category of pension and TurboTax will not include the pension in your MA taxable income. (See the attached screenshot below. Click to enlarge.)

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