Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
lenorawitt
New Member

Why is turbo tax saying I owe MS state tax on my retirement income this year?

 
3 Replies
DaveF1006
Employee Tax Expert

Why is turbo tax saying I owe MS state tax on my retirement income this year?

According to Renee, one of Turbo Tax experts, You will exclude the income by performing the following steps

 

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 Mississippi Employees and enter the information requested:
  8. Click on Continue
  9. Click on From a Qualified Plan
  10. Continue answering the questions
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
ssonwheels
Level 1

Why is turbo tax saying I owe MS state tax on my retirement income this year?

 

After trying the steps listed and even deleting the already entered 1099R information for my Louisiana state retirement I was never asked the question "Where Is This Distribution From". TurboTax needs to address this issue. I have used TurboTax for many years. This is my third year reporting a 1099R. I live in Mississippi

and have retirement from the state of Louisiana. I have reviewed the Mississippi income tax instructions for 2020 and I should not be paying income tax on my pension income. Please help by fixing this issue!

AmyC
Employee Tax Expert

Why is turbo tax saying I owe MS state tax on my retirement income this year?

If your 1099-R is code 2 where you retired younger than retirement age based on years of service, you have different steps to follow. Even if this is not the case for you, you can adjust the entry to match your situation. You may be able to skip federal and go to the MS instructions.

 

Tell the federal it is a regular pension:

When you went through the federal entry screen of the  1099-R, it asked questions and commented that with code 2 there was no extra penalty. It asked if you were a safety officer, what did you do with the money - cashed it, any periodic payments, yes- regular payments from this retirement account, payment start year, 2020 or before selection, describe the taxable amount, yes, box 2a is taxable amount.

 

Tell the state it meets the service requirements:

  • Move to MS return:   
  • Proceed to the screen with the title Enter Any Other Income or Losses.
  • Enter Service requirement pension adjustment and the amount of the distribution as a negative number. 

 

 

@ssonwheels

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
v
Privacy Settings