I contacted support and they told me that the fix was put on today and there was nothing more that they could tell me. Obviously the fix was not thoroughly tested.
So I figured out what the problem was and came up with a solution. First let me state I am not a tax professional and this is my solution. Everyone needs to take responsibility for their own taxes.
What I found out is that for 2022 the IRS changed how they handle w2 Box 11 ( Nonqualified pension) They now subtract it from 1040 Line 1a ( 1040SR) and put it on Schedule 1 line 8t which moves it to 1040 line 8 other income (1040SR). so the income is included. So federal is fine and in fact mine was accepted at the end of February. The line numbers I quoted are for the SR form and will differ depending on the 1040 form you have, but just look for wages and other income.
The problem occurs when it gets transferred to Mass. ( this could affect other states I suppose). Schedule 1 is apparently transferred to MA Schedule X which then shows up as other income on Form 1 line 9. So again the income is collected. The problem is MA looks at the w2s to compare what is in Box 1 from all W2s. and Turbotax is NOT passing Box 1 from the W2 for the W2 that has box 11 filled. So the reject is really that you have a W2 mismatch from what the employer/ pension company provided and what turbotax is sending.
I talked to MADOR and explained what I found and they agreed with me. We don't know if the problem is a Turbotax problem passing the wrong info or MA tax not updated to match federal changes ???
My solution is: Since my federal was already accepted, was to go back in and remove the content of box 11. The end result is the taxable income stays the same and in my case the refund amount stayed the same. Which of course makes sense because the income was there just on different lines. I re-transmitted the MA return and it was accepted.
Essentially my W2 income as reported looks the same as it has since I retired in 2003. It always worked before and it works now. All income is appropriately taxed.
