This involves how TT Deluxe handles Maryland form 1099-R
The description of my 1099-R Box 19 is "Pick-up Contributions". Box 18 is blank. I entered my data in the "first locality: row for boxes 17 (0.00) and 19 (the pickup contribution value). In my form 502SU, the pickup displays on line 2 "Carryover of unused pickup contribution(s) from 2019" of the Pickup Contribution Amount Smart Worksheet. Line 4 displays 0., and Line 5 displays the pickup amount. There is no entry in Line r.
It does not seem that TT Deluxe is complying with the Maryland instructions for the 1099-R Box 19.
Is that accurate?
I have no idea why the value got inserted into Line 2. Did I make an entry error in my 2019 return?
Thanks for the help. Stay safe.
TH666
Instructions source: MD 1099-R newsletter
Excerpts:
Under Federal taxes, it states:
You do not need to make any special entries on your federal tax form. The Retirement Agency has included your pick-up contributions when computing the taxable amount of your pension for federal tax purposes.
Under Maryland state taxes, it states:
You have already paid Maryland State taxes on the pick-up contributions listed on your 1099-R. To avoid paying taxes twice, you must subtract the pick-up amount from your federal adjusted gross income shown on page 2 of your Maryland tax return (Form 502) as follows:Enter your pick-up amount on line “r” of Form 502SU. Enter the sum of all subtractions from Form 502SU on line 13 of Form 502. Enter code letter “r” in the code letter box of Form 502. This serves as a subtraction from your income which will reduce your taxable net income on line 20 (Form 502). The subtraction is limited to the amount of pick-up contribution stated on the 1099-R or the taxable pension, whichever is less.
