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ALF29
Level 1

Massachusetts Teachers Retirement not allowing e-file

I'm trying to file a return with two 1099-R forms from the Commonwealth of Massachusetts / MA Teacher's Retirement System. 

 

After entering the 1099-R in the federal section and answering the question about it being from the Mass Teachers Retirement system, and going through the MA state section "Pensions and Annuities Summary" to verify the 1099-R was excludable from MA tax (G - Tax-Exempt), I'm still getting this error when attempting to e-file:

 

Form 1: Tax-Exempt Pension should not be entered directly on Form 1 for State Electronic filing. You should enter the information on the Federal Return, Form 1099-R and/or use the Pensions and Annuities Smart Worksheet to make any tax-exempt adjustments.

 

This hasn't been an issue in prior years, and this error occurred after paying.

 

I'm using TurboTax Deluxe 2020 Online edition.

 

1 Best answer

Accepted Solutions
BillM223
Expert Alumni

Massachusetts Teachers Retirement not allowing e-file

You say that this occurred when you tried to e-file? Did you run the state review?

 

Usually, this kind of error occurs in the review when TurboTax says that something is missing and gives you a picture of the form. You naturally enter the missing item right there, and TurboTax is happy until it's time to e-file.

 

This is because despite what is implied, you need to go back to the original input screen in the interview and enter it there.

 

For this situation, you have two places to enter things:

1. Immediately after you enter the 1099-R on the federal return, you will be asked what the source of the pension is. You will check "Qualified government retirement distribution".

2. In the MA interview, for reasons not clear to me, you are asked again about the source of the pension. You will see a screen, "Pensions and Annuities Summary". 

  •    Here you must click the Edit button for this pension.
  •    You must answer that the pension is excludable on the next screen.
  •    Then you must indicate the type of Pension ("G - Tax-Exempt").

Did you do all these steps? It is acting like you skipped something, reasonably thinking that you had done enough.

 

Anyway, walk through the 1099-R portion of the federal interview again and the Pensions and Annuities Summary on the state interview, and see if walking through this with fresh answers will help.

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3 Replies
BillM223
Expert Alumni

Massachusetts Teachers Retirement not allowing e-file

You say that this occurred when you tried to e-file? Did you run the state review?

 

Usually, this kind of error occurs in the review when TurboTax says that something is missing and gives you a picture of the form. You naturally enter the missing item right there, and TurboTax is happy until it's time to e-file.

 

This is because despite what is implied, you need to go back to the original input screen in the interview and enter it there.

 

For this situation, you have two places to enter things:

1. Immediately after you enter the 1099-R on the federal return, you will be asked what the source of the pension is. You will check "Qualified government retirement distribution".

2. In the MA interview, for reasons not clear to me, you are asked again about the source of the pension. You will see a screen, "Pensions and Annuities Summary". 

  •    Here you must click the Edit button for this pension.
  •    You must answer that the pension is excludable on the next screen.
  •    Then you must indicate the type of Pension ("G - Tax-Exempt").

Did you do all these steps? It is acting like you skipped something, reasonably thinking that you had done enough.

 

Anyway, walk through the 1099-R portion of the federal interview again and the Pensions and Annuities Summary on the state interview, and see if walking through this with fresh answers will help.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

ALF29
Level 1

Massachusetts Teachers Retirement not allowing e-file

Hi BillM223,

 

Turbotax initially caught this during the final review of the MA state return after I selected eFile.  I'd assumed that I'd missed something, so I'd double checked the 1099-R entries and then it caught it during the state review.

 

Both 1099-R forms have the Qualified government retirement distribution" selected:

 

TurboTax_Deluxe_2020.png

 

TurboTax_Deluxe_2020-2.png

 

In the MA interview, both are listed as excludable and G - Tax-Exempt

 

TurboTax_Deluxe_2020.png

 

However, when I just stepped through it again to get the screenshots above (didn't change anything), it cleared the state review and allowed me to eFile the state form. But thank you for confirming I wasn't missing anything.

BillM223
Expert Alumni

Massachusetts Teachers Retirement not allowing e-file

As one boss of mine once told me, "It's time to declare victory and go home".

 

I am glad it works for you now.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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