Why did Turbotax transfer SSD from the Federal form as retirement income to the State, when It's not retirement?

[AnnMcK-]

this is SSD income and how do I correct it on the state form?

[DanaB27]

What state are you working on?

Please verify you enter your  Social Security in the right location:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “Social security income”
3. Click on “Jump to Social security income”
4. Answer "Yes" to the question "Did you receive Social Security benefits?" and click “Continue”

Please see Is my Social Security income taxable? for additional information.

[xmasbaby0]

Did you enter your Social Security in the right place on your federal return?

Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

States that tax Social Security benefits:

CO, CT, KS, MN, MO, MT, NB, NM, ND, RI, UT, VT, WV

These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

[AnnMcK-]

Yes, it is in the correct location.  It is Illinois, and the IRS does tax part of the income.  This is the location it was entered on the federal form: 

Social Security benefits (Form SSA-1099)

Enter the info from your SSA-1099 below. If you have more than one, add up the amounts for each box. Learn more

However This is Disability not retirement, does Illinois call Disability them the same?

[xmasbaby0]

Yes----Social Security can be taxable on your federal return.   It is NOT taxable on your IL return.    Social Security disability is reported on a SSA1099, and it is treated the same way as "regular" Social Security by IL.    The information flows from your federal return to the state return.

[AnnMcK-]

Hi Dana,

Yes I did enter it in the right location: Under the "your income" section it was entered here: Social Security (SSA-1099, RRB-1099) in box 5

This state is Illinois.

But when the State return comes up, it indicates this is retirement income.

Also, what are the qualifications for the free tax return filing? We have A W2, SSD, and using a standard deduction (even though we have a mortgage).  It looks like we will have to pay for the state return filing.

Lastly, my mom is filing in Illinios, has Pension, SS retirement and taking the standard deduction, does she qualify for the free online advice if filed before 3/31? It looked like if I signed up for a new account to do her taxes I would have to pay $59.

[VolvoGirl · Accepted solution]

It does show up on federal line 6a and 6b?  Did it transfer the full amount on 6a to the state?  Or just the taxable amount on 6b?  You might be seeing the federal taxable amount entered as a subtraction to the AGI to adjust your state return.

[AnnMcK-]

Thanks Volvogirl, I see there is not a  6a listed in the form fields,  there is a Box 5, then an entry It is taxable Box 6  and boxes for Medicare payments. The total combined AGI (both my paycheck and the SSI) is too high as Dana said, I was just trying to make sure it went into the right type of Social Security income, because it is definitely NOT retirement, but disability. does type of income make a difference for the State of Illinois?

[VolvoGirl]

Huh?  You don't see line 6a over on the left on your federal 1040 return?  The total SSDI should be on line 6a and any taxable amount on line 6b.  On the federal form there is no difference between Social Security and SS Disability.  Or are you looking at the state forms?