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Turbotax is counting my Alabama pension as income on my Mississippi taxes. This is not correct. Mississippi doesn't tax this income. What am i missing?

I must not be marking something correctly at some point. Help  I have filled it in several times.
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2 Replies
BillM223
Expert Alumni

Turbotax is counting my Alabama pension as income on my Mississippi taxes. This is not correct. Mississippi doesn't tax this income. What am i missing?

Mississippi says "Generally, retirement income, pensions and annuities are not subject to Mississippi Income tax if the recipient has met the retirement plan requirements. Early distributions are not considered retirement income and may be subject to tax. ​" (See this MS page)

 

So,

1. Did you enter this as 1099-R?

2. Did you check the IRA box on the 1099-R (you shouldn't)

3. Was this an early distribution (generally, before you were 59 1/2)? If so, it is taxable in Mississippi (see above).

 

I ran a test, and the pension was not reported in Mississippi without me needing to do anything, so please review the three questions above.

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Turbotax is counting my Alabama pension as income on my Mississippi taxes. This is not correct. Mississippi doesn't tax this income. What am i missing?

The TurboTax "experts" posting on here are incorrect.  Many of us have contacted the state department of revenue as well as PERS.  TurboTax has it wrong this year. See this thread:

https://ttlc.intuit.com/community/retirement/discussion/turbo-tax-is-taxing-my-retirement-income-for... 

@dlesley-fb 

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