Massachusetts NR form with Rhode Island pension and dividends

[samrhodeisland]

I work in Massachusetts (MA) for the full year and I live in Rhode Island (RI) for the full year. I receive payments from a old company pension. I have also earned dividends. To me, these are RI income and should not be subject to MA. In Turbotax desktop version, they appear on MA form 1 NR/PY in a section titled Non-Massachusetts Source Income Smart Worksheet and is used on line 14e of the form to create a ratio. This is then used on line 22 to reduce my exemption amount. Should these amount be on this form and, if not, how do I take them off the form in Turbotax? Ty.

[MaryK4 · Accepted solution]

Yes, this is correct.  Massachusetts uses form 1-NR/PY to calculate the "Nonresident Deduction and Exemption ratio". This ratio (Line 14g) compares MA source income to your total income to apportion deductions. Although the pension and dividends are not taxed, they are included as "non-MA income" on the worksheet to determine this ratio, which affects the deduction amount.   See MA Nonresident and Part-year Resident Deductions and Exemptions.

[samrhodeisland]

Hi MaryK4. Thank you for your quick reply. I don't like the answer 🙂 but I will live with it.