topic Massachusetts Schedule X IRA Conversion in Retirement tax questions

Massachusetts Schedule X IRA Conversion

alm1 — Sun, 14 Mar 2021 21:37:09 GMT

I converted $707 from a Traditional IRA to a Roth IRA in 2020. I contributed $500 in 2012 and $200 in 2013. The remaining $7 was interest. (I forgot to invest the money.) During 2012 and 2013 I lived in Massachusetts and worked in Rhode Island. I made all of my income in Rhode Island. Turbo Tax asks me to enter "Other Contributions Previously Taxed by Massachusetts." Should I enter $700 or $0?

Re: Massachusetts Schedule X IRA Conversion

WendyN2 — Mon, 15 Mar 2021 21:28:53 GMT

No, you would enter zero for this question. I understand where you might think that in the conversion and multi-state situation, but given that they were previously Trad IRAs then you were not previously taxed on them.

Re: Massachusetts Schedule X IRA Conversion

alm1 — Mon, 15 Mar 2021 21:53:52 GMT

I was confused because MA considers contributions to IRA's to be taxable:

https://www.mass.gov/service-details/view-tax-treatment-of-retirement-plan-contributions-and-distributions

Re: Massachusetts Schedule X IRA Conversion

JohnB5677 — Tue, 16 Mar 2021 15:24:42 GMT

Unfortunately, Wendy is not correct.

You should enter the $700.

Massachusetts does not give you a tax deduction on traditional IRA's like you get from the federal. You pay the tax when you put contributions into the IRA.

Therefore, every contribution that you made to an IRA while you lived is Massachusetts was already taxed.