I live in Vermont. All my income is earned and reported in Vermont. A couple years ago I opened a traditional IRA CD in a Massachusetts bank because it had a high interest rate. I do not think I got any state deduction...only the Federal deduction.
I recently did a total distribution ($2,400) and the bank withheld $118 in Massachusetts State Taxes. The money I used to open the IRA CD came from Vermont income.
Turbo Tax is now saying I need to file a Massachusetts Non Resident tax form which will cost me $40.00.
Does anyone know what Massachusetts forms and line I can file manually to report this 1099-R distribution, pay any necessary tax or possibly get a full refund?
An IRA distribution is taxable only by your State of Residence at the time you receive it.
If you wish to obtain a refund of incorrectly withheld MA taxes, then you must file a non-resident MA tax return, on which you report the withholding but declare zero MA income.
If you wish to avoid the TurboTax fee, one option is to download the MA non-resident tax return form from the MA tax website and complete it by hand.
https://www.mass.gov/personal-income-tax
(At present the finalized 2024 form is not yet available on the MA website.)