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Level 2

Question

Massachusetts Pension Error

Forum|Forum|3 years ago
March 12, 2023
4 replies
0 views

State e-file fails because "tax exempt pension should not be entered directly on Form 1 for State e-file". This is the error message.

The pension amount has always been taxable and is always shown on form 1. It was not entered directly but was carried over from the federal return. All the right boxes were checked to declare the pension fully taxable.

This is a 2022 Turbo Tax desktop error. Please fix.

JamesG1

Level 15

I am able to report a tax exempt pension and a taxable pension on TurboTax CD/Download. The taxable pension is listed on line 3 of Massachusetts form 1. The tax exempt pension is listed on line 4 of Massachusetts form 1.

Income from most private pensions or annuity plans are taxable in Massachusetts. Certain government pensions are exempt under Massachusetts law.

The screen Pensions and Annuities Summary in the Massachusetts state tax return shows the taxable pension with no entry under Type. How is the pension that you are having trouble with reported on this screen?

@Oldtech1

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Oldtech1Author

Level 2

Hi and thanks for looking at my question. I looked at the smart worksheet and I see the same one you do. However, the taxable pension is shown on Line3. The final taxable pension less the tax exempt portion should be shown on Line4. At least that is my reading of the worksheet.

I revisited my worksheet and saw that there was a zero in the block for "tax exempt" portion under Line3. I thought the zero (which the software

put there) might be the problem. I erased the zero so that only my taxable pension shows in the Line4 space. I tried to E-file and it failed. The zero is back if that means anything.

I have attached a screenshot of my smart worksheet. Absence any further help from TTax I will proceed to file by mail.

JamesG1

Level 15

When you entered the IRS form 1099-R in the Federal tax return, does box 2a include a taxable amount or is box 2a empty?

Is the box Taxable amount not determined checked?

At the screen Massachusetts Special Handling About this 1099-R in the Federal tax return, did you select None of the above?

At the screen Was This Distribution From a Qualified Plan?, did you select Non-qualified plan or Qualified Plan?

@Oldtech1

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BillM223

Level 15

"State e-file fails because "tax exempt pension should not be entered directly on Form 1 for State e-file"."

This message generally means that you should not make direct entries on a form, whether in Forms mode in the CD/download software or in the Review (where screens like the form appear). Instead, you should go back to the original input and re-enter the data there.

My guess is that you accidentally marked on a field on Form 1 while in Forms mode.

Since this is Form 1, I don't think you can delete Form 1 in Forms mode, but maybe you can. I would try deleting Form 1 and then walking through the MA interview. Otherwise, you may need to delete MA the state and start it over again. Since you have the CD/download software, this should be doable, if a little time consuming.

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davegr78

Level 2

I am having the same problem. Nothing has been entered directly on Form. I initially entered only 1 Form 1099-R prior to running error check for Massachusetts without any issues. After I entered a second 1099-R in the exact same fashion as the first one, I am now receiving an error for Massachusetts.

Any specific suggestions for correcting this error would be appreciated.

Thanks!

Oldtech1Author

Level 2

Unfortunately I could not track down a fix. I filed the state by mail. Although TT had a tax expert respond, everything I tried or anything that was suggested by another user did not work. I got tired of troubleshooting their software.

LindaS5247

Level 14

You need to mark it as a Government Pension when you enter your Form 1099-R.

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Oldtech1Author

Level 2

Someone misread my original post. My pension is not a government pension. Another Massachusetts resident posted the same problem. Just fix the software.

witurnbull

Level 2

This error exists with the online version of turbo tax. The customer service representatives have been of no help. I spoke with three of them and still nothing. It was an issue for tax year 2022 but the rep and that time was able to help me resolve the issue and file electronically.