Massachusetts Form 1 error on taxable pensions and annuities

Forum|Forum|1 year ago
March 24, 2025
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Cannot fix a Massachusetts state tax return error in order to e-file. Error message reads "Tax-Exempt Pension should not be entered directly on Form 1 .....etc....". I've seen similar posts on this subject relating to pensions but not any resolutions. In my case it's due to a life insurance distribution that is only partially taxable. I've double checked the 1099-R entries on the Federal form, and it is correct. I've paid for the MA state e-filing and have not yet e-filed the Federal.

Best answer by NicolleR1

Go through your Massachusetts return, then go to the adjustment section. Then go through the questions until you reach the question for Pension Adjustment - Federally Taxable. If you have a 0 there, you will need to remove the 0 in the box and leave it blank for non-taxable Massachusetts Pensions. If you need to make a manual adjustment because it's different from the federal, you can't file electronically. Instead, you will need to mail your MA return. See Image below for reference

NicolleR1Answer

Joe666Author

Thank you. The suggested fix worked well - the box must be left blank. I suggest perhaps rewording (or eliminating) this troublesome question page for Massachusetts returns unless the 1099-R information, which has already been entered earlier in the Federal return section, is either incomplete or in error.