my Pensions are non-taxable in MA pensions. When going to submit I got an error saying "Tax-Exempt Pension shouldn't be entered directly on form 1 for state filing”. Can I go ahead and submit this way? or do I need to do something different?
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When you entered your 1099-R for your pension income in your Federal return, did you indicate the 'Source' of the pension as an exempt pension type on the 'Where is this distribution from?' screen. You may want to check your entry there.
If so, this info will flow into your Massachusetts return, so that you don't have to make a direct entry on Form 1 in your MA return. This will clear the error you are seeing.
If you're using TurboTax Online, be sure to clear your Cache and Cookies before returning to the 1099-R entry.
We did this however it still shows up as an "issue" that needs fixing and there is a note saying we can't e-file. Can I push it through anyway?
After clearing cookies and cache multiple times I finally got it to submit by clearing the dollar amount of the annuity. The final return looks like what we submitted last year so I submitted and will hope for the best!
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