topic Re: 1099R in Retirement tax questions

1099R

dearnest1 — Tue, 24 Feb 2026 03:52:05 GMT

Line 7 on my 1099r has a#2 distribution code and this is causing me to owe $1000 in State taxes. This is my pension and I'm not suppose to have to pay state tax on it and never have in the past. I've also always had a code 2 for this box. Why would I owe this year???

Re: 1099R

BillM223 — Fri, 03 Mar 2023 03:53:25 GMT

Could you please clarify what state you are referring to?

Re: 1099R

dearnest1 — Fri, 03 Mar 2023 04:15:36 GMT

Mississippi

Re: 1099R

DaveF1006 — Fri, 03 Mar 2023 15:05:52 GMT

Yes, this income is excluded but you do need to exclude this in your Mississippi state tax return. To exclude:

Go to your state taxes tab>select the edit button next to Mississippi
Scroll to a screen called Enter Any Other Income and Losses
Enter the amount of the pension distribution as a negative number
Enter the description of "MS pension adjustment"

Re: 1099R

dearnest1 — Fri, 03 Mar 2023 20:05:45 GMT

Thank you for the help!!