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I filed my state income tax for Hawaii which exempts pensions and annuity. Turbo pulled my taxable federal pennon among minus the non-taxable amount.

Forum|Forum|7 years ago
June 3, 2019
1 reply
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Should't turbo have used the gross amount on the 1099r?

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Best answer by RBBrittain

Hawaii, like many states, starts its tax return with Federal AGI and then makes any necessary adjustments. In that situation, the proper way to report income that is taxed by the Feds but *not* the state is to deduct the Federal taxable amount from Federal AGI. That appears to be what you described, and that is correct. (TurboTax should NOT have used 1099-R gross if the net taxable Federal amount is less, since only the latter amount made it to Federal AGI.)

R

RBBrittainAnswer

Employee

Hawaii, like many states, starts its tax return with Federal AGI and then makes any necessary adjustments. In that situation, the proper way to report income that is taxed by the Feds but *not* the state is to deduct the Federal taxable amount from Federal AGI. That appears to be what you described, and that is correct. (TurboTax should NOT have used 1099-R gross if the net taxable Federal amount is less, since only the latter amount made it to Federal AGI.)

L

levansy2Author

So what you are sayings is that for the Hawaii State income tax, even if pensions are exempt, I must pay income taxes on the portion of my pension that I had already paid taxes on even if the federal return exempts me from paying taxes on my portion of the contributions.

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mavalentino

How do I correct a HI state income tax? How do I get the money/check returned that I sent in for money that I owed that was incorrect. I am a retired senior/disabled HI citizen that retired from another state