city tax

[Rachel5436]

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?

[DianeW777]

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

[Rachel5436]

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.