I recommend reviewing your input on both the federal and state interview sections to ensure the questions are all answered to reflect the amount correctly.
- Log back into TurboTax and go to the Federal input section of the program.
- Select Income & Expenses
- Scroll down to All Income
- Select show more to the right of Retirement Plans & Social Security
- Select start/revisit to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
- As you enter your 1099-R information, proceed through the screens until you see the page titled Where is your distribution from?
- Be sure to select the appropriate category based upon your source of your retirement income.
Your entry above will pull into your state tax return and reflect whether the retirement distribution is treated as taxable or nontaxable.
Next you will need to proceed to the State interview section.
- When you see a screen titled Status of your state returns, select Edit to the right of MA.
- Be sure to go through the screens and answers the questions as prompted.
- When you get to the screen titled Pensions and Annuities from All Sources, be sure to check the box as applicable.
Once you have made the changes above, your pension income should be excluded from your MA taxable income.
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Thanks for your timely feedback. I think I discovered a glitch in the cross over of fed data to State. The state tax worksheets pick up the non taxable pension. At review, the state tax return identifies that the amount on the worksheet is probably not correct. I could not move on to filing with out fixing the worksheet. After much frustration I realized the worksheet field needed to be blank. Not zero but blank. It appears that the state tax form identified the non taxable amount correctly. There is a problem with how the worksheet deals with this amount.