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jonncindy2011
Returning Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

It did not tax the rollover, but I should not owe taxes to the state of MS on this pension.  I can't edit it.  It says that if it is exempt to Leave box 16 blank when entering the information for the 1099R so I am not sure how to correct this

12 Replies
ReneeM7122
Level 9

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

To get the State pension deduction, you will first have to enter the necessary information in your Federal Income tax return and then in the State income tax return.

Here are the steps to enter your exempt State employee pension:

 

On the  Federal Income Tax  portion:

  1. In the search or find box, type in 1099-R
  2. Click on Jump to 1099-R
  3. Scroll down to Retirement Plans and Social Security
  4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
  5. Enter your 1099-R or if you have entered it, click on Edit then Continue
  6. Answer the next questions until you get to the Where Is This Distribution From? screen
  7. Select the source State Employees and enter the information requested:
  8. Click on Continue
  9. Click on From a Qualified Plan
  10. Continue answering the questions

On the State return portion: 

  1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
  2. At the Retirement Distributions Summary page, click on Edit State
  3. If no additional information is required, click on Continue
  4. Click on Done
FERRERJP
New Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

This did not work for me using version 020dot000dot1621.  These is no option to select state employee in the 1099-R questions, nor can I find it on the worksheet.  I even deleted the 1099-r and re-entered it again just to be sure.  Still comes up as taxable in my MS tax forms.

 

The state return portion of the answer does not apply to the MS questions.

jonncindy2011
Returning Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

It is still calculating my MS Retirement income as taxable income which is not correct.  I called the state to ask if it should be taxed.  The programming in the MS state turbotax needs to be corrected

jonncindy2011
Returning Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

Frustrating!  I would like a refund if they don't fix this quickly.......

ReneeM7122
Level 9

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

To get the State exemption for your retirement, you will first have to enter the necessary information in your Federal Income tax return and then in the State income tax return.

Here are the steps to enter your exempt State employee pension:

 

On the  Federal Income Tax  portion:

  1. In the search or find box, type in 1099-R
  2. Click on Jump to 1099-R
  3. Scroll down to Retirement Plans and Social Security
  4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
  5. Enter your 1099-R or if you have entered it, click on Edit then Continue
  6. Answer the next questions until you get to the Where Is This Distribution From? screen
  7. Select the source State Employees (or applicable choice) and enter the information requested:
  8. Click on Continue
  9. Click on From a Qualified Plan
  10. Continue answering the questions

On the State return portion: 

  1. At the Changes to Federal Income page, scroll down to Received retirement income, click Start (or Update)
  2. At the Retirement Distributions Summary page, click on Edit State
  3. If no additional information is required, click on Continue
  4. Click on Done

@jonncindy2011

jonncindy2011
Returning Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

I did this.  It DOES NOT work.  No where does it say anything about being a state employee.  It does ask if you are a firefighter or police officer.  I even said yes on that question to see if it would work and it did not. The state product is still taxing my retirement.  The programming needs to be corrected.

DaveF1006
Expert Alumni

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

Are you using Turbo Tax Online or Turbo Tax Software?

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Ajplanning
New Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

Hi - I am having the same problem with my NY pension.  It seems my 1099-R boxes 14-16 are different than Turbo Tax.  I have EXEMPT in box 14 and NY in box 16, which is not what Turbo Tax indicates should be in those boxes.

BillM223
Expert Alumni

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

The IRS form reserves box 14 for state tax withheld, box 15 for the two character state code and the Payer's state ID number, and box 16 for the amount of distribution reported to the state.

 

This is what TurboTax shows.

 

However, the IRS actually does not define what goes into these boxes (because they are for the states), so sometimes entities that print a 1099-R may not follow that scheme.

 

EXEMPT in box 14 doesn't really make sense, since it is the state distribution (box 16) that should be exempt. And NY belongs in box 15, not 16.

 

In your case, it seems, there was no intention to withhold state tax on this distribution, so you might as well just leave boxes 14-16 blank.

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jonncindy2011
Returning Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

Software

jonncindy2011
Returning Member

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

I left those boxes blank.  Doesn't matter...still calculates the retirement as taxable income.  How can the programming be corrected?  There needs to be an update to fix this.

DaveF1006
Expert Alumni

When I enter my state of MS 1099R which is tax exempt in MS it keeps telling me I owe state taxes on that income

It depends. Is the 1099-R income the only income you have entered in Turbo Tax. If so, did you enter your income in these precise steps?

  1. In the search or find box, type in 1099-R
  2. Click on Jump to 1099-R
  3. Scroll down to Retirement Plans and Social Security
  4. At IRA,401(k), Pension Plan Withdrawals (1099-R), click Start (or Update)
  5. Enter your 1099-R or if you have entered it, click on Edit then Continue
  6. Now start your state return by selecting state in the left pane of the return.
  7. Answer the questions until you reach a page that mentions your 1099-R income
  8. Complete any information that the program asks for.  Continue and finish the state interview.
  9. Now to check to see if your Mississippi retirement income is excluded, perform these steps.
  10. Go to tax tools>tools>view tax summary
  11. Look at the amount that is listed as Adjusted Gross income (AGI)
  12. Now look at your Mississippi Tax Summary and look under MS Adjusted Gross Income. Is that number reduced by the amount that is in the AGI amount in the Federal Tax Summary.?
  13. if using Turbo Tax Software, you can go into the forms mode and compare AGI amounts.

 

 

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