topic WHAT DOES "AZ RESIDENTS STATE OR LOCAL GOVERNMENT PENSION" MEAN? in Retirement tax questions

WHAT DOES "AZ RESIDENTS STATE OR LOCAL GOVERNMENT PENSION" MEAN?

rqgreenstone — Sat, 13 Mar 2021 19:52:46 GMT

Re: WHAT DOES "AZ RESIDENTS STATE OR LOCAL GOVERNMENT PENSION" MEAN?

BillM223 — Wed, 17 Mar 2021 00:17:47 GMT

"AZ RESIDENTS STATE OR LOCAL GOVERNMENT PENSION"

On its face, it means any pension for a former employee of the state of Arizona or of a governmental subdivision in Arizona (city, county, etc).

Is this the exact wording, or does it say, "Exclusion for U.S. Government, Arizona State, or Local Government Pensions"?

Re: WHAT DOES "AZ RESIDENTS STATE OR LOCAL GOVERNMENT PENSION" MEAN?

saucy27 — Mon, 20 Feb 2023 14:43:04 GMT

I have a related issue. I have a federal pension (OPM). Marked it as a federal pension and marked it as from federal or state government in inputting in the federal income screens. But I'm not getting the $2500 subtraction from income on line 29a of the AZ return, and there's no screen that links to this and no override screen. I hate to mark it as "other subtraction" when it has its own line on the return. How can I make this subtraction appear? It's preventing me from qualifying for the family income tax credit. Thanks.

Re: WHAT DOES "AZ RESIDENTS STATE OR LOCAL GOVERNMENT PENSION" MEAN?

saucy27 — Tue, 21 Feb 2023 11:54:26 GMT

I figured it out myself. After re-inputting the 1099R into the federal screen countless times and noting that I had indeed associated it with a federal government pension (and had tagged it as CSA from the outset), I added "AZ" to the state field on the input screen and the subtraction has now appeared! Thanks.