I have two situations that I need help with: 1) I am a member of the Florida Retirement System (FRS). I retired in August of 2018; and 2) I moved to Michigan as a full-time resident.
1) I originally became a member of the FRS in the late 1990's but did not become vested. I rejoined the FRS in 2009 when I became employed with the State University System of Florida, became vested in 2011 and retired in August 2018. I know that I originally did not contribute anything to the FRS however eventually the state of Florida mandated us to contribute 3%. I began receiving a pension check in September 2018.
I have entered the information from the 1099-R that I received from FRS into my Turbo Tax Home & Business program. Turbo Tax is now asking me to enter information regarding the "FRS annuity system." Do I need to research more background info through FRS?
2) Will I need to file a state of MIchigan income tax form even though my income was earned in Florida?
1) Depending on the entries from your 1099-R, you may need to add information about your retirement in TurboTax. Generally, FRS contributions that you made as an employee are tax-deferred, meaning that you didn't pay tax on that amount when you were working, so the full amount of your distribution is taxable, so unless you participated in the FRS Investment Plan or received a lump-sum distribution, the TurboTax entries should be pretty straightforward.
What does your 1099-R show for distribution code in box 7? What other boxes have amounts? On the screen in TurboTax that says Was This Distribution From a Qualified Plan? you would check "From a Qualified Plan." You would check that you didn't make any after tax contributions to the plan.
Please go back and review your entries,and respond if you still have questions.
2) Retirement income is taxed by the state in which you live (Michigan) not the state where you earned the retirement (Florida). The fact that Florida has no state income tax is one reason why so many people want to retire there.