topic city tax in State tax filing

city tax

Rachel5436 — Tue, 30 Mar 2021 01:21:56 GMT

We got a 401k dispersement and are claiming it over 3 years as part of the CARES Act. It seems to process fine with the Federal return, but when filling out the Muskegon City return, I get this message Form CF-1040: Excludible pension distribution should not exceed total taxable pension distributions. How can I fix this in the Muskegon return?

Re: city tax

DianeW777 — Tue, 30 Mar 2021 13:50:41 GMT

It appears that the Muskegon City return does not conform to the special three year capture of the 401(k) distribution. When completing your city return, check to see if there is an add-back of the deferred amount for pension. The link below will provide instructions and forms for your convenience.

If you are using TurboTax CD/Download, you can click on Forms (top right) and then review the city form.

2020 Muskegon Income Tax

Re: city tax

Rachel5436 — Wed, 31 Mar 2021 00:26:53 GMT

Thank you, but I don't understand what you are recommending. Turbotax also won't let me remove the city tax. We can print the paperwork and manually fill it out.