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Level 2
posted Feb 4, 2021 12:32:12 PM

taxes on pensions from non-reidential state

I read that pension income is only taxed in your state of residence.  Why does Turbo Tax insist on listing my pension income also in the state from which the pensions are paid?  How can I have the income taken off the non-residential tax form?

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1 Replies
Expert Alumni
Feb 4, 2021 12:55:04 PM

Couple of questions - Did you list your pension state in the Other State Income field under the Personal Information section?   If so, you want to remove that entry and it will remove the non-resident return from your tax filings.     That question and field is only for income you earned in another state - not pension income.   

 

You do not need to report a pension in any state other than your resident state - - unless the payer of the pension withheld the wrong state income tax on your 1099-R.   If taxes were withheld for the wrong state (any state but your resident state)  you would need to file the non-resident return to get those taxes back.    But if the withholdings are only from your resident state, you don't have to file anything but your resident state return.  

 

If amounts are withheld for a non-resident state in Box 14 - you will need to enter that state in the Other State Income field (even though you have no earned income in that state) so you can file the non-resident return and get those withholdings back.