Maine State Pension Deduction

[rmds]

Maine Form 1S Worksheet, Line 1, why does turbotax autofill a pension amount that is different from Federal Form 1040 Line 5b?  Total eligible pension on line 5B meeting all Maine definitions, but a much smaller amount is autofilled on the state of Maine form.

[JohnW152]

TurboTax may be picking up amounts that are excludable from the pension deduction amount.

According to the Worksheet for Pension Income Deduction - Schedule 1S, Line 4 in the Schedule 1S Instructions: 

Pension benefits that do not qualify are those received from an ineligible deferred compensation plan under IRC section 457(f), refunds of excess contributions, lump-sum distributions included on federal Form 4972 and distributions subject to the additional 10% federal tax on early distributions. See federal Form 5329, Part 1, or federal Form 1040 or 1040-SR, Schedule 2, line 8. Also, disability benefits reported as wages on your federal income tax return do not qualify.

Also, 

...[P]ick-up contributions received from the Maine Public Employees Retirement System (“MainePERS”) allowed to be deducted on Form 1040ME, Schedule 1S, line 7 and pension income from 457(b) plans received prior to age 55 that is not part of a series of equal periodic payments made over the life of the recipient and the recipient’s designated beneficiary, if applicable, may not be included in the deductible pension amount.

You might look at your 1099s and see if you can find where your benefits might be excludable from the deduction amount, compared to what you’re seeing in the TurboTax program.

[rmds]

Thank you for your response.  In my case the pension benefits do qualify, so the exclusions outlined do not apply.  Last year Turbotax included the entire amount.  This year the difference is $6300.  I'm thinking I'd better override the auto-fill and include the total amount.  I think that will increase my taxes.

[AmyC]

Maine state pension is a two part process. If you override a field, lit will void your accuracy guarantee. Please be sure you followed the steps for Federal and State.

On the  Federal Income Tax  portion:

1. In the search or find box, type in 1099-R
2. Click on Jump to 1099-R
3. Scroll down to Retirement Plans and Social Security
4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
5. Enter your 1099-R or if you have entered it, click on Edit then Continue
6. Answer the next questions until you get to the Where Is This Distribution From? screen
7. Select the source State Employees and enter the information requested:
8. Click on Continue
9. Click on From a Qualified Plan
10. Continue answering the questions

On the State return portion: 

1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
2. At the Retirement Distributions Summary page, click on Edit State
3. If no additional information is required, click on Continue
4. Click on Done

Here is a link to the MA state website, which discusses the taxability of MA pensions.