topic Backdoor Roth IRA conversion - MA state not working in Get your taxes done using TurboTax

Backdoor Roth IRA conversion - MA state not working

bryonthego — Wed, 11 Feb 2026 08:39:21 GMT

After deleting and re-adding my Traditional IRA contribution & Roth conversion multiple times, it has finally worked and adjusted my Federal return to exclude the amount ($7500) from taxable income. However the $7500 is still being included in my Massachusetts return taxable income on Schedule X, line 2. (last year I did not have this problem - the amount was excluded on schedule X)

Re: Backdoor Roth IRA conversion - MA state not working

bryonthego — Tue, 09 Apr 2024 15:49:21 GMT

After a lot more research I finally figured out a workaround:

During the MA state interview, you can enter the amount previously taxed on the "Taxable IRA/Keogh Distributions" screen. Enter the nondeductible contribution amount under "Other contributions previously taxed by Massachusetts"

I'm not sure why this is necessary and I didn't have to do this last year but at least it worked.

Intuit needs to make the whole backdoor Roth IRA process a lot easier - it doesn't need to be this difficult.

Re: Backdoor Roth IRA conversion - MA state not working

user17710097333 — Tue, 24 Feb 2026 07:21:49 GMT

This same issue is occurring for the 2025 tax year.

First, backdoor conversions are incredibly tricky to enter in the Federal Form. It should be a much simpler process. TaxFreeUSA, for example, makes this incredibly easy.

Second, at least for the State of Massachusetts, backdoor conversions automatically flow to the state return as taxable income. I thank the above poster for sharing their solution to this, but I wonder how many TT users don't catch this and pay a 5% tax on their backdoor conversions?

Re: Backdoor Roth IRA conversion - MA state not working

riccardodalla — Sun, 19 Apr 2026 20:30:18 GMT

Thank you!! This is still a problem in 2026. At first I couldn't find the page you mentioned but after going through the whole state flow again I saw it. This worked!

+1 on Turbotax handling this VERY poorly on both federal and state.

Re: Backdoor Roth IRA conversion - MA state not working

fanfare — Sun, 19 Apr 2026 22:02:04 GMT

"Other contributions previously taxed by Massachusetts"

this is an interesting way to cook up a workaround in state of MA. But it is essentially a false statement.

"I'm not sure why this is necessary"

It's not necessary, when the entry is done correctly.

Your Traditional IRA contribution should be on Form 8606 Line 1 and that should take care of the issue you were seeing.

@bryonthego

@user17710097333

Re: Backdoor Roth IRA conversion - MA state not working

riccardodalla — Sun, 19 Apr 2026 23:55:35 GMT

You said that right, "should". With everything entered correctly on the Federal return (followed the Intuit guide on their website for backdoor Roth), the MA return still shows the contribution as taxable income.

Re: Backdoor Roth IRA conversion - MA state not working

fanfare — Mon, 20 Apr 2026 03:09:50 GMT

I took a look at the MA Instructions;

"Traditional IRA Distributions are taxable for both Massachusetts and federal tax purposes if the distribution exceeds the amount of IRA contributions that were previously subject to tax."

Here's how I read it.

MA has its own rules for IRA distributions differing from IRS.

This means the standard trick -- "Backdoor" Roth IRA contribution -- in MA may not be tax free.

If you have an empty Traditional IRA and attempt a backdoor Roth IRA contribution via conversion, it will be taxable in MA.

Reason: your Traditional IRA basis (which came into existence only momentarily and vanished ) had not been previously taxed by MA.

Therefore, TurboTax is doing it correctly.

@riccardodalla

@user17710097333

@bryonthego

Re: Backdoor Roth IRA conversion - MA state not working

riccardodalla — Mon, 20 Apr 2026 03:26:44 GMT

I disagree. Massachusetts allows Backdoor Roth like most (all?) states. Your money has already been taxed.

Even what you shared explains it: "...if the distribution exceeds the amount of IRA contributions that were previously subject to tax.". This money was taxed before putting it in the traditional IRA (definition of a backdoor Roth) so it should not be taxed again.

Not the ultimate source of course, but as an additional datapoint Google overview just confirmed our woes:

Avoiding Double Taxation: To ensure the conversion isn't taxed again by the state, you must manually indicate on your state return that the money was previously taxed by Massachusetts.

On Schedule X (Other Income), you typically use a worksheet for "Taxable IRA/Keogh Plan and Roth IRA Conversion Distributions".

You must enter the amount of your original contribution in the field for "Total contributions previously taxed by Massachusetts" to offset the distribution.

Re: Backdoor Roth IRA conversion - MA state not working

fanfare — Mon, 20 Apr 2026 05:05:57 GMT

OKAY