Turbotax isn't transferring Schedule D short term correctly into MA state form (long-term is fine). Any ideas?

[JohnW222]

There can be differences in what needs to be reported on each return. 

The instructions for Line 10, Massachusetts Short-Term Capital Gains, in Massachusetts's Instructions for Form 1, Resident Income Tax, provides for a special worksheet to use in calculating what's reportable on line 10 of the Massachusetts return. 

It's possible that the program is reflecting that, based on the information you've entered.

[JB4797]

I am having this same issue. The amount that is transferred from short-term capital gains/(losses) from my federal Schedule D into my Massachusetts return is incorrect. There is no issue with the long-term amount, only the short-term amount. I called customer support and there appears to be a bug in the Turbo Tax software. When I looked through the worksheets, I can see that the software is double counting by including Line 1A column H in addition to the gross short-term loss amount, which results in Line 1A from schedule D being counted twice.

When will this be fixed? Had I not caught the bug, it would have resulted in my MA return being filed incorrectly. Also, if i already paid for the software on the online version, how can i clear/remove the MA return to try it again once this issue is fixed?

[KathrynG3]

It depends. I recommend going back to your Massachusetts interview. If these capital gain amounts should  not be adjusted for Massachusetts**, then there should be no entry in Massachusetts. TurboTax will automatically carry the federal details to the state return.

If this is not the case, I recommend the following steps:

• removing the state,
  • Click on File>Remove a State
• checking for updates, and
  • From Online or Help depending on the level of your program, click Check for Updates
  • Manually update TurboTax for Windows Software (Basic, Deluxe, Premier, Home & Business)
• re-adding the state program before proceeding with your return.
  • Click the link for more details about troubleshooting the installation and consider re-downloading the state
    • Download TurboTax State (Windows)
    • Download TurboTax State (Mac)

**The additional information to determine if there are capital gain/loss differences identified by TurboTax is:

Capital gain/loss differences occur when you sell property which has a different adjusted basis on your federal return than on your Massachusetts return.

 Pre-1996 installment sales classified as ordinary income for Massachusetts purposes.

 Long-term capital gains or losses from transactions reported as installment sales for U.S. income tax purposes but not for Massachusetts.

 Gains from qualified small business stocks that were excluded on your federal return, but are taxed for Massachusetts.

 Massachusetts has adopted basis adjustment rules to take into account differences between Massachusetts and federal tax laws. For more information regarding basis adjustment rules, see TIR 88-7.

 Like-kind exchanges other than real property that is reported on the federal return but should be deferred for Massachusetts.

If you are still experiencing unexpected results, please call in to TurboTax - click the link for your call-in options - and tell them you were given this message from the TurboTax Employee Experts in Community for the Call Center Team:

• your program is not updating.
• This is a known issue.
• The solution is for the call center pro's to push you
  • first the federal software, and
  • then the state.
• Everything will work after the new download.

@JB4797

[JB4797]

What if I am using the online version? I've already paid for it, and it won't let me delete and re-add Massachusetts. I tried deleting the 1099 on my federal and reimporting it, but it still makes the same mistake on the Massachusetts return.